Test Questions & Answers | Organizational Design – Ch.11 - Frank Rothaermel - Strategic Management 6e - Test Pack by Frank Rothaermel. DOCX document preview.

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Test Questions & Answers | Organizational Design – Ch.11

Student name:__________

  1. Organizational design involves establishing a firm’s structure, culture, and control mechanisms.
    1. ______
  • true
  • false


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-01 Define organizational design and list its three components.
Learning Objective : 11-02 Explain how organizational inertia can lead established firms to failure.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > TF Qu. 01 Organizational design involves establishing ...


  1. Inertia, defined as a firm’s resistance to changing the status quo, can lead to the firm’s eventual failure.
    1. ______
  • true
  • false


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-02 Explain how organizational inertia can lead established firms to failure.
Topic : Organizational Inertia and Avoiding Core Rigidities
Source : Chapter 11 Test Bank > TF Qu. 02 Inertia, defined as a firm’s resistance to...


  1. A planned emergence approach to strategic planning is most likely to be found in a highly centralized firm.
    1. ______
  • true
  • false


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > TF Qu. 03 A planned emergence approach to strategic pl...


  1. Organic organizations typically exhibit a lower rate of entrepreneurial behaviors and innovation.
    1. ______
  • true
  • false


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-04 Compare and contrast mechanistic organizations and organic organizations.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > TF Qu. 04 Organic organizations typically exhibit...


  1. A firm that successfully balances exploitation of current opportunities and exploration of future possibilities is considered ambidextrous.
    1. ______
  • true
  • false


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > TF Qu. 05 A firm that successfully balances exploitati...


  1. A primary advantage of the matrix organizational structure is that it simplifies decision making and communication in geographically diverse organizations.
    1. ______
  • true
  • false


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > TF Qu. 06 A primary advantage of the matrix organizati...


  1. Firms that pursue a closed approach to innovation typically enjoy first-mover advantages.
    1. ______
  • true
  • false


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-06 Evaluate closed and open innovation, and derive implications for organizat
Topic : Strategies for Innovation
Source : Chapter 11 Test Bank > TF Qu. 07 Firms that pursue a closed approach to innov...


  1. An open innovation model reduces a firm’s absorptive capacity.
    1. ______
  • true
  • false


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-06 Evaluate closed and open innovation, and derive implications for organizat
Topic : Strategies for Innovation
Source : Chapter 11 Test Bank > TF Qu. 08 An open innovation model reduces a firm...


  1. Changing corporate culture typically involves mass layoffs.
    1. ______
  • true
  • false


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > TF Qu. 09 Changing corporate culture typically...


  1. Results-only-work-environments (ROWEs) are characterized by their use of extrinsic motivations such as promotions or the threat of layoffs.
    1. ______
  • true
  • false


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : The Role of Incentives and Rewards in Promoting Strategy Execution
Source : Chapter 11 Test Bank > TF Qu. 10 Results-only-work-environments (ROWEs) are c...


  1. Managerial decisions about a firm’s strategy and organizational structure should not be interrelated.
    1. ______
  • true
  • false


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > TF Qu. 11 Managerial decisions about a firm’s st...


  1. The four key elements of a firm’s organizational structure are specialization, centralization, formalization, and generalization.
    1. ______
  • true
  • false


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > TF Qu. 12 The four key elements of a firm’s orga...


  1. Jerry is one of the SBU managers for a firm that has been in business for over 50 years. The external environment in which the firm has operated has changed significantly in the past decade, but it is still operating under a “business as usual” mantra. Jerry can’t seem to convince the upper-level executives to reorganize the firm’s structure and formal reporting relationships. This firm is probably experiencing
    1. ______

a failed strategy.

organizational inertia.

a change in leadership.

increased morale due to their organizational culture.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-02 Explain how organizational inertia can lead established firms to failure.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 13 Jerry is one of the SBU managers for...


  1. Saddiq’s company has a high degrees of centralization in its organizational structure. Saddiq has learned that a main drawback of working in a firm with centralized decision making is that it can often result in which of the following?
    1. ______

reduced creativity and innovation

less employee job satisfaction due to the repetition of tasks

increased levels of hierarchy

slow response time and reduced customer satisfaction


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 14 Saddiq’s company has a high degrees...


  1. Vanessa, a few years out of law school, and wants to open her own small law firm. Vanessa should probably adopt a(n)________ structure for the firm.
    1. ______

simple

functional

M-form

matrix


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 15 Vanessa, a few years out of law school, and...


  1. Simple organizational structures often exhibit low levels of formalization and specialization. Which of the following is not a benefit of employing a simple organizational structure?
    1. ______

being able to easily and quickly coordinate and communicate within the firm

not having the need for sophisticated information technology/management systems

employing specialists that can develop deep knowledge/expertise in their field

being able to converse with the CEO and other upper level executives


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 16 Simple organizational structures often exhib...


  1. The University of Central Florida has a typical College of Business that houses several specific mini-departments such as management, marketing, finance, accounting, economics, and real estate. This College of Business best resembles a(n)________ structure.
    1. ______

simple

functional

multidivisional

holarchy


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 17 The University of Central Florida has a typi...


  1. A firm that uses a functional structure will typically have efficient top-down and bottom-up communication, but
    1. ______

dual reporting relationships typically blur lines of authority.

the top management team may fail in their coordination and control efforts of functional-level employees.

communication may be hampered among the horizontal, distinct organizational functions.

career paths and professional development are limited.


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 18 A firm that uses a functional structure will...


  1. Paul runs an organization that implements a cost-leadership strategy. This business-level strategy supports both a________ and________ structure.
    1. ______

matrix; organic

M-form; vertical

simple; organic

functional; mechanistic


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Mechanistic vs. Organic Organizations
Source : Chapter 11 Test Bank > MC Qu. 19 Paul runs an organization that implements a ...


  1. Li runs a firm that has diversified into different product lines and geographies. She should probably use a(n)________ organizational structure.
    1. ______

functional

simple

network

M-form


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 20 Li runs a firm that has diversified into dif...


  1. Which type of organizational structure is recommended when a firm has a narrow focus in terms of product or service offerings and a small geographic footprint?
    1. ______

matrix structure

simple structure

functional structure

multidivisional structure


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Types of Functional Strategies
Source : Chapter 11 Test Bank > MC Qu. 21 Which type of organizational structure is...


  1. Elvira is the CEO of All Things Inc. Her company employs a matrix structure, which is the combination of the________ and________ structure.
    1. ______

functional; M-form

simple; functional

M-form; simple

network; functional


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Types of Functional Strategies and The Use of Multidivisional (or M-Form) Structure to Implem
Source : Chapter 11 Test Bank > MC Qu. 22 Elvira is the CEO of All Things Inc...


  1. Raphael’s team meets to discuss and improve “how things get done around here.” The team is talking about its
    1. ______

organizational culture.

formal operating procedures.

open innovation framework.

matrix structure.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 23 Raphael’s team meets to discuss and...


  1. Angelika is the CEO of One Spice Inc., a firm that grows and processes the Naga Viper pepper, one of the world’s hottest peppers. Angelika wants to better understand the relationship between her firm’s organizational culture and the ability to achieve competitive advantage. The relationship between these two states that
    1. ______

a firm is unable to achieve a competitive advantage if they are pursuing a differentiation strategy.

a firm can achieve competitive advantage if their organizational culture follows the VRIO principles.

a firm can achieve and sustain competitive advantage if their balanced scorecard is implemented correctly.

a firm cannot achieve a competitive advantage when they have an effective organizational culture.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 24 Angelika is the CEO of One Spice Inc., a firm...


  1. Denise wants to clearly communicate and create a________, a key input control, before her team tackles business activities. This way the team will be able to better allocate her firm’s scarce resources to accomplish the tasks at hand.
    1. ______

mission statement

carrot-and-stick approach

results-only-work-environment (ROWE)

budget


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 25 Denise wants to clearly communicate and crea...


  1. Kenyatta’s main competitor is known for its strong organizational culture, which gives it a competitive advantage in a tight market. Kenyatta is eager to duplicate his competitor’s culture but is finding it difficult. Two reasons why are likely the successful competitor’s________ and________.
    1. ______

historical conditions; external opportunities

causal ambiguity; social complexity

organizational socialization; input controls

tangible budgets; intangible budgets


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 26 Kenyatta’s main competitor is known for...


  1. AT&T, IBM, Siemens, and Pfizer have been shifting their innovation strategy toward a model designed to blend internal knowledge with external knowledge by sourcing strategic alliances. This example best represents the
    1. ______

absorptive capacity model.

not-invented-here syndrome.

closed innovation framework.

open innovation framework.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-06 Evaluate closed and open innovation, and derive implications for organizat
Topic : Strategies for Innovation
Source : Chapter 11 Test Bank > MC Qu. 27 AT&T, IBM, Siemens, and Pfizer have bee...


  1. Organizational design is
    1. ______

the process of creating, implementing, and modifying the structure of an organization.

primarily focused on replacing a firm’s competitive advantage with competitive parity.

a process that always functions independently of strategy formulation.

primarily focused on formulating effective strategies, not implementing them.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-01 Define organizational design and list its three components.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > MC Qu. 28 Organizational design is


  1. Why does strategy implementation often require changes within an organization?
    1. ______

Strategy implementation is less important than strategy formulation.

Strategy implementation transforms strategy into actions and business models.

Strategy always follows structure.

Strategy implementation does not affect resource allocation and power distribution within an organization.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-01 Define organizational design and list its three components.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > MC Qu. 29 Why does strategy implementation often requi...


  1. Which of the following statements is true of strategy in an organization?
    1. ______

Strategy implementation is considered unsuccessful if it requires changes within an organization.

To implement a strategy successfully, an organization’s structure must be rigid.

Strategy implementation does not affect resource allocation and power distribution within an organization.

Organizational structure must follow strategy in order for firms to achieve superior performance.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-01 Define organizational design and list its three components.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > MC Qu. 30 Which of the following statements is true of...


  1. As firms grow in size and complexity, they have a tendency and an incentive to focus on________, which can lead to inertia and even failure.
    1. ______

internal shifts

organizational structure

specialization

incremental innovation


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 11-02 Explain how organizational inertia can lead established firms to failure.
Topic : Organizational Inertia and Avoiding Core Rigidities
Source : Chapter 11 Test Bank > MC Qu. 31 As firms grow in size and complexity...


  1. What most likely happens when a firm optimizes its organizational structure to its current situation?
    1. ______

It plants the seed of subsequent failure: the tightly coupled system can break apart when internal or external pressures occur.

It achieves superior performance.

It makes it difficult for managers to make the necessary changes due to its effects on resource allocation and power distribution.

It transforms strategy into actions and business models.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-02 Explain how organizational inertia can lead established firms to failure.
Topic : Organizational Inertia and Avoiding Core Rigidities
Source : Chapter 11 Test Bank > MC Qu. 32 What most likely happens when a firm optimiz...


  1. ________ refers to a firm’s resistance to change the status quo that can set the stage for the firm’s subsequent failure.
    1. ______

PESTEL factors

Formalization

Organizational inertia

Centralization


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-02 Explain how organizational inertia can lead established firms to failure.
Topic : Organizational Inertia and Avoiding Core Rigidities
Source : Chapter 11 Test Bank > MC Qu. 33 ________ refers to a firm’s resistance to...


  1. Massey’s regional chain of hardware stores were successful. The stores filled a need in a particular market at a particular time. Managers defined and measured success by financial metrics, focusing on short-term performance. They put in place structures, measures, and systems to accommodate and manage the firm’s increasing size due to its continuing success. It’s hard to argue with a formula for success, but as a result of such success, Massey’s executive team became resistant to change. What was the team displaying?
    1. ______

a significant value gap

an innovative approach to organizational design

organizational inertia

organizational design


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 11-02 Explain how organizational inertia can lead established firms to failure.
Topic : Organizational Inertia and Avoiding Core Rigidities
Source : Chapter 11 Test Bank > MC Qu. 34 Massey’s regional chain of hardware stores...


  1. Fang and Bone Meds is a successful manufacturer of pet medications. Because the pharmaceutical industry features a high rate of change and the threat of disruption is high, Fang and Bone Meds should
    1. ______

be prepared to restructure as the landscape changes.

stick with the structure that brought it success no matter what happens.

attempt to implement an unstructured organization.

switch to whichever structure is most common in the industry.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 11-02 Explain how organizational inertia can lead established firms to failure.
Topic : Organizational Inertia and Avoiding Core Rigidities
Source : Chapter 11 Test Bank > MC Qu. 35 Fang and Bone Meds is a successful...


  1. A firm’s________ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed.
    1. ______

norms

culture

structure

control


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 36 A firm’s ________ determines how the work...


  1. Which of the following real-world scenarios best exemplifies formalization?
    1. ______

Zappos’ focus on allowing its customer service employees to use their own approach rather than depend on scripts

McDonald’s use of standard operating procedures across the world

W. L. Gore’s associates organizing themselves in project-based teams that are led by sponsors, not bosses

Yahoo’s decision to fire its CEO after incurring huge losses


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 37 Which of the following real-world scenarios ...


  1. Which of the following statements is accurate regarding specialization?
    1. ______

It captures the extent to which employee behavior is steered by explicit and codified rules and procedures.

It describes the degree to which a task is divided into separate jobs.

It refers to the degree to which decision making is concentrated at the top.

It determines the formal, position-based reporting lines and stipulates who reports to whom.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 38 Which of the following statements is...


  1. A high degree of formalization in an organization is most likely to
    1. ______

improve customer service.

slow down decision making.

produce inconsistent results.

increase creativity and innovation.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 39 A high degree of formalization in an organiz...


  1. In 2013, then-CEO Tony Hsieh announced that Zappos would implement a reorganization in which, as Hsieh said, “employees … act more like entrepreneurs and self-direct their work … .” At that point, Hsieh changed Zappos from
    1. ______

a holacracy to a hierarchy.

a hierarchy to a holacracy.

a decentralized structure to a formalized structure.

a bottom-up to a top-down style.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 40 In 2013, then-CEO Tony Hsieh announced...


  1. ________ determines the formal, position-based reporting lines and thus stipulates who reports to whom.
    1. ______

Formalization

Hierarchy

Specialization

Centralization


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 41 ________ determines the formal, position-based...


  1. Freeport Bagel & Deli is a family-owned business with eight employees. Brother and sister Elise and Simon run the day-to-day operations and make all the key decisions, including what to include on the menu, which vendors to use, and how much to pay their staff. In this scenario, Freeport Bagel & Deli has adopted a________ structure.
    1. ______

simple

tall hierarchical

decentralized organizational

functional


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 42 Freeport Bagel & Deli is a family-owned business...


  1. West Coast–based Dr. Suds Soap Company has offices in Los Angeles, San Francisco, Portland, and Seattle. Each office is headed by a vice-president who reports directly to CEO Ravi Satterjee. The heads of the HR, finance, and marketing teams also report to Satterjee. Based on this scenario, which of the following statements is most likely to be true?
    1. ______

Ravi Satterjee is head of a decentralized organization.

Dr. Suds Soap Company is a mechanistic organization.

Ravi Satterjee has a wide span of control.

Dr. Suds Soap Company is run as a formalized organization.


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 43 West Coast–based Dr. Suds Soap Company...


  1. Yubaba Inc., a fidget spinner manufacturing company, encourages its employees to enjoy their work by taking on additional responsibilities or switching jobs with each other. It allows its employees immense flexibility in charting their own career path within the organization. Bill has worked at Yubaba for eight years, but has never had a boss or supervised an employee. Which of the following is most likely true in this scenario?
    1. ______

Yubaba Inc. is a mechanistic organization.

Yubaba Inc. has a flat organizational structure.

Yubaba Inc. has a high degree of centralization.

Yubaba’s organizational culture is governed by codified rules.


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 44 Yubaba Inc., a fidget spinner manufacturing ...


  1. Jared works as a frontline employee for a nationwide retail store. He reports to a floor manager, who reports to a departmental manager, who reports to a regional supervisor, who reports to a vice president, who reports to the CEO. Which of the following best describes this retail store?
    1. ______

flat structure

tall structure

centralized structure

decentralize structure


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 45 Jared works as a frontline employee for a n...


  1. The Bulwark Tea & Coffee chain recently reorganized, laying off some managers and employees. The remaining managers were told they would each have an increased span of control. What does this mean?
    1. ______

The remaining employees will have decreased power and autonomy.

Each manager will have more employees to supervise and monitor.

All employees will be expected to take on more specialized roles.

Internal communications and decision-making processes will be monitored by top management.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 46 The Bulwark Tea & Coffee chain recently...


  1. E Corp is a pharmaceutical company that has many breakthroughs in medicine to its credit. Unlike most other pharmaceutical companies, E Corp has a relaxed work environment. Employees are encouraged to choose the projects that interest them; communication between team members and their supervisors is open and easy. Because of the company’s work culture, its employees feel motivated to work harder and display more entrepreneurial behaviors. In this scenario, E Corp Inc. is most likely an organization that is
    1. ______

formalized.

mechanistic.

centralized.

organic.


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 11-04 Compare and contrast mechanistic organizations and organic organizations.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > MC Qu. 47 E Corp is a pharmaceutical company that has ...


  1. McDonald’s operates Hamburger University, which trains students to ensure consistent food quality across its outlets throughout the world. This indicates that McDonalds’s
    1. ______

is organic in nature.

is mechanistic in nature.

has an informal structure.

has a decentralized structure.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-04 Compare and contrast mechanistic organizations and organic organizations.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > MC Qu. 48 McDonald’s operates Hamburger Universi...


  1. Los Pollos Hermanos is a nationwide fast-food chain. Decision power resides at the top of the organization. Each job is documented in minute detail. The firm has many levels of supervision, including vice presidents and regional managers. The firm’s headquarters provides detailed instructions to each of its franchisees so that they provide comparable quality and service across the board. Based on this scenario, which of the following is an accurate statement about Tony’s?
    1. ______

Los Pollos Hermanos has a low degree of specialization and formalization, a high degree of centralization, and relies on a flat hierarchy.

Los Pollos Hermanos has a high degree of specialization and formalization, a low degree of centralization, and relies on a tall hierarchy.

Los Pollos Hermanos has a high degree of specialization, formalization, and centralization and relies on a tall hierarchy.

Los Pollos Hermanos has a low degree of specialization, formalization, and centralization and relies on a flat hierarchy.


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 11-04 Compare and contrast mechanistic organizations and organic organizations.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > MC Qu. 49 Los Pollos Hermanos is a nationwide fast-foo...


  1. Which of the following accurately describes a mechanistic organization?
    1. ______

It has a low degree of specialization and formalization and decentralized decision making.

It has a high degree of specialization and formalization and a tall hierarchy that relies on centralized decision making.

It is a highly flexible organization that encourages slow decision making and boasts high employee motivation.

It typically exhibits a higher rate of entrepreneurial behaviors and innovation.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-04 Compare and contrast mechanistic organizations and organic organizations.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > MC Qu. 50 Which of the following accurately describes...


  1. Hooli, a web development firm, wants to implement an organic structure to foster innovation and attract the most talented creative minds. Which of the following features will make it difficult to do so?
    1. ______

decision-making power distributed throughout the organization

a wide span of control for managers

dedication to a cost-leadership business strategy

flexible job descriptions for employees


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 11-04 Compare and contrast mechanistic organizations and organic organizations.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > MC Qu. 51 Hooli, a web development firm, wants to impl...


  1. While working a night job at a call center, John creates an app called iFood, which can be used to place orders at restaurants, rate the restaurants, and make reservations. Because he receives good responses for his app, he quits his current job to focus his efforts on iFood. He creates a start-up called JohnBuilt1 and hires three people to help him improve iFood and maintain the servers that run it. In this scenario, JohnBuilt1 most likely has a________ structure.
    1. ______

simple

matrix

mechanistic

functional


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 52 While working a night job at a call center, ...


  1. Knitwear designer Ebony has decided to open a storefront where she can sell her products. Sales are encouraging, so Ebony hires a part-time employee to wait on customers and a part-time knitter to help create her designs. Meanwhile, Ebony is busy designing more knitted fashions and making as many as she can, all while handling the day-to-day responsibilities of running a store. Which of the following is likely to be a pitfall for Ebony as she experiences growth and runs her store in this way?
    1. ______

Ebony will likely be pressured to expand her business before she is ready.

Ebony will likely have to increase prices on her knitwear.

Hiring employees could possibly dilute her brand and infringe on her intellectual property (her designs).

As the store grows, Ebony is likely to feel overloaded and experience burnout.


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 53 Knitwear designer Ebony has decided...


  1. Which of the following is an advantage offered by a functional structure?
    1. ______

It allows for an efficient top-down communication chain and thus relies on a relatively tall structure.

It facilitates a lower division of labor, which is linked to higher productivity.

It allows for a higher degree of specialization and deeper domain expertise.

It facilitates a lower level of specialization.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 54 Which of the following is an advantage offer...


  1. Why does a functional structure rely on a flat organizational structure?
    1. ______

The work in the organization is centrally coordinated by the CEO.

It allows for a higher degree of specialization and domain expertise.

It allows for efficient bottom-up and top-down communication.

It allows for the implementation of a differentiation strategy.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Hierarchy
Source : Chapter 11 Test Bank > MC Qu. 55 Why does a functional structure rely on a fl...


  1. Umbrella Corp is a notebook manufacturing company based in Ohio. Umbrella Corps’ main market is Texas. Its aim is to provide products at better prices than its competitors. Which of the following structures is Umbrella Corp likely to use if it has a functional setup?
    1. ______

organic

simple

matrix

mechanistic


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 56 Umbrella Corp is a notebook manufacturing co...


  1. The goal of a differentiation strategy is to create a competitive advantage by offering products or services
    1. ______

that reconcile the trade-offs between differentiation and low cost.

at a higher perceived value while controlling costs.

that combine the advantages of the functional-structure variations used for cost leadership.

that reduce the firm’s cost below that of competitors while offering acceptable value to customers.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 57 The goal of a differentiation strategy is to...


  1. A functional structure is recommended when a firm
    1. ______

has a broad focus in terms of its product/service offerings.

has a low level of diversification.

has a low degree of specialization.

diversifies into different product lines and geographies.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 58 A functional structure is recommended when a...


  1. Which of the following is an advantage of using a functional structure when pursuing a cost-leadership strategy?
    1. ______

It allows a cost-leader to upgrade core competencies in manufacturing and logistics.

It enables a cost-leader to build products that are different from its competitors’ offerings.

It enables a cost-leader to increase costs above that of its competitors.

It allows a cost-leader to operate in a decentralized organizational structure.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 59 Which of the following is an advantage of us...


  1. Why does a firm use an organic organization combined with a functional structure when implementing a differentiation strategy?
    1. ______

It allows the firm to create incentives to foster process innovation in order to drive down cost.

It allows the firm to reduce its cost below that of competitors while offering acceptable value.

It allows the firm to constantly upgrade core competencies in R&D, innovation, and marketing.

It allows the firm to nurture and constantly upgrade necessary core competencies in manufacturing and logistics.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 60 Why does a firm use an organic organization ...


  1. Which of the following features helps match a cost-leadership strategy to a functional structure?
    1. ______

decentralization

process and product innovations

flexibility and mutual adjustment

focus on economies of scale


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 61 Which of the following features helps match ...


  1. Blue Cat Restaurant Group relies on a highly centralized functional structure to ensure consistency in the quality and taste of its products and to drive down costs via process innovations. However, as a consequence of its highly compartmentalized structure, the firm has found it difficult to transfer information and ideas from one department to the next. With the launch of its new line of breakfast foods coming up, how can the Blue Cat Restaurant Group improve its ability to collaborate without sacrificing the benefits of its current structure?
    1. ______

by establishing cross-functional teams

by switching to a simple structure

by switching to a competitive M-form structure

by decreasing managers’ span of control


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 62 Blue Cat Restaurant Group relies on a highly...


  1. To effectively implement a blue ocean strategy, a firm must balance centralization to control costs with
    1. ______

a functional structure that resembles an organic organization.

specialization and formalization.

a hierarchical organization.

decentralization to foster creativity and innovation.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 63 To effectively implement a blue ocean strategy...


  1. Duke & Duke is the parent company of GetItDone.com and NownNever Inc. To cut costs, Duke & Duke integrated GetItDone.com’s and NownNever Inc.’s management functions with Duke & Duke’s management, while keeping other functions such as product development independent. Duke & Duke has encouraged the senior teams at both GetItDone and NownNever to exploit the success of their existing products while exploring new products for the future. This scenario best exemplifies a(n)
    1. ______

multidivisional structure.

organic organization.

simple structure.

ambidextrous organization.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 64 Duke & Duke is the parent company of Get...


  1. Which of the following is a disadvantage of a functional strategy?
    1. ______

It frequently lacks the tools required to pursue a cost-leadership strategy.

It does not facilitate rich communication between members of the same department.

It cannot effectively address a higher level of diversification.

It does not allow organizations to be flexible or innovative.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 65 Which of the following is a disadvantage of ...


  1. When a firm diversifies into different product lines and geographies, a________ structure is preferred.
    1. ______

simple

functional

multidivisional

network


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 66 When a firm diversifies into different produ...


  1. The strategic leaders of Stafford Cookware, a large, successful retail chain based in the Midwest, want to expand its operations across the United States. Which of the following organizational structures should Stafford Cookware use?
    1. ______

simple

multidivisional

basic

functional


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 67 The strategic leaders of Stafford Cookware...


  1. Rodin Art Supplies operates as a strategic business unit (SBU) under Achieva Chemical Inc. From this information, it may be reasonable to infer that
    1. ______

Rodin Art Supplies does not have its own profit-and-loss responsibility.

Rodin Art Supplies is dependent on the other SBUs in Achieva Chemical Inc.

Rodin Art Supplies has a matrix organizational structure.

Rodin Art Supplies is led by its own CEO (or equivalent general manager).


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 68 Rodin Art Supplies operates as a strategic...


  1. Why should managers using the M-form organizational structure to support a related-diversification strategy ideally concentrate decision making at the top of the organization?
    1. ______

It allows a high level of integration.

It helps contain the core competencies within a strategic business unit (SBU).

It leads to competition between SBUs.

It helps evaluate each SBU as a stand-alone profit-and-loss center.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 69 Why should managers using the M-form organiz...


  1. San Francisco–based Shrimpton & Co. sells seafood products to natural foods markets across the country. The company has core values that define what its leaders consider important and guide employees in achieving and fulfilling its mission. It also has norms that define appropriate employee attitudes and behaviors. Collectively, these shared values and norms make up Shrimpton & Co.’s
    1. ______

open innovation.

functional structure.

organizational culture.

domestic strategy.


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 70 San Francisco–based Shrimpton & Co. sells...


  1. An organization that is organized according to strategic business units (SBUs) and also along organizational structures is most likely using a________ structure.
    1. ______

functional

multidivisional

matrix

simple


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 71 An organization that is organized according ...


  1. A firm that uses a structure organized along different business functions such as HR, R&D, sales, and marketing and also along different geographical areas of the world is most likely using a________ structure.
    1. ______

global matrix

multidivisional

functional

simple


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 72 A firm that uses a structure organized along...


  1. Which of the following global strategies best matches with a multidivisional structure?
    1. ______

international

multidomestic

global-standardization

transnational


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 73 Which of the following global strategies bes...


  1. Which of the following organizational structures matches best with an international strategy?
    1. ______

simple

matrix

multidivisional

functional


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 74 Which of the following organizational struct...


  1. Why is the optimal organizational structure a multidivisional structure?
    1. ______

Its focus is on driving down costs.

Its focus is on producing differentiated products.

Its focus is on retaining activities within a single geographic area.

Its focus is on establishing a flat hierarchy operated in a decentralized fashion.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 75 Why is the optimal organizational structure ...


  1. Which of the following provides an example of a common drawback of a functional strategy?
    1. ______

Jack had a difficult time communicating efficiently with the manager of another department.

Leslie was surprised about the inflexibility of her firm when it rejected her marketing plan.

Chris’s manager dismissed his idea because it was too innovative.

Denise did not accept the position with the firm because it has an ineffective cost-leadership strategy.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Strategy and Success
Source : Chapter 11 Test Bank > MC Qu. 76 Which of the following provides an example o...


  1. Rosemont-Cambridge pursues a related diversification strategy. It derives less than 70 percent of revenues from its original business unit, Rosemont- Baskin, and maintains several related units including Rosemont-Ortega and Rosemont-Elm. Which of the following structures is most likely to support this strategy?
    1. ______

functional with centralized decision-making power

M-Form with decentralized decision-making power (competitive multidivisional)

M-Form with centralized decision-making power (cooperative multidivisional)

functional with decentralized decision-making power


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Strategy and Success
Source : Chapter 11 Test Bank > MC Qu. 77 Rosemont-Cambridge pursues a related diversification...


  1. Sirius Cybernetics Corp. produces touch-enabled wearable devices. Its research and development team recently became aware of a new, open-source technology produced by a firm overseas that would improve the processing speed and battery life of all Sirius Cybernetics devices. In this scenario, Sirius Cybernetics would be best served to embrace
    1. ______

open innovation.

closed innovation.

disruptive innovation.

radical innovation.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 11-06 Evaluate closed and open innovation, and derive implications for organizat
Topic : Strategy and Success
Source : Chapter 11 Test Bank > MC Qu. 78 Sirius Cybernetics Corp. produces touch-enab...


  1. Two leading home appliance companies, Globex and Pug Tech, are in competition for market share. In their quest for exciting new products, Globex employs an open innovation model, while Pug Tech pursues a closed innovation model. Which of the following statements is most likely true?
    1. ______

Globex has a greater chance of capturing market share.

Pug Tech has a superior absorptive capacity.

Pug Tech will protect its intellectual property with patents and trade secrets.

Globex is most concerned with securing first-mover advantages.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 11-06 Evaluate closed and open innovation, and derive implications for organizat
Topic : Strategy and Success
Source : Chapter 11 Test Bank > MC Qu. 79 Two leading home appliance companies, Globex...


  1. ________ describes the collectively shared values and norms of an organization’s members.
    1. ______

Competitive advantage

Organizational structure

Organizational culture

Core competency


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 80 ________ describes the collectively shared valu...


  1. ________ define appropriate employee attitudes and behaviors.
    1. ______

Values

Artifacts

Appraisals

Norms


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 81 ________ define appropriate employee attitudes ...


  1. Employees learn about an organization’s culture through the process of
    1. ______

socialization.

exploitation.

co-opetition.

acculturation.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 82 Employees learn about an organization’...


  1. The most important yet least visible element of organizational culture is
    1. ______

values.

norms.

laws.

artifacts.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 83 The most important yet least visible element...


  1. Which of the following statements best describes groupthink?
    1. ______

The founder defines and shapes an organization’s culture, which can persist for decades after his or her departure.

Organizations compete with one another for resources, but they also need to cooperate to share competencies.

Employees internalize an organization’s values and norms through immersion in its day-to-day operations.

Opinions coalesce around a leader without individuals critically challenging and evaluating that leader’s opinions and assumptions.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 84 Which of the following statements best descr...


  1. Which of the following types of groups is most susceptible to groupthink?
    1. ______

a diverse group

a cohesive group

a heterogeneous group

a decentralized group


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 85 Which of the following types of groups is mo...


  1. What is most likely to happen if a firm relies too long on a competency without honing, refining, and upgrading as the firm and the environment change?
    1. ______

The firm’s original core competency can turn from a liability into an asset.

The firm’s organizational inertia can turn into its core rigidity.

The firm’s competitive parity can turn into its competitive advantage.

The firm’s culture can turn from a core competency into a core rigidity.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 86 What is most likely to happen if a firm reli...


  1. GM’s insistence on sticking to a bureaucratic culture combined with its M-form structure and its subsequent failure to adapt to changing customer preferences for more fuel-efficient cars, produce higher quality, and create innovative designs best exemplifies
    1. ______

decentralization.

founder imprinting.

groupthink.

core rigidity.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 87 GM’s insistence on sticking to a burea...


  1. Which of the following real-world scenarios best exemplifies the use of organizational culture to build competitive advantage?
    1. ______

W. L. Gore & Associates organizes its employees into project-based teams.

Apple develops high-tech products that are preferred by consumers across the world.

Southwest Airlines pilots sometimes help load baggage, which results in quick turnaround time.

GM offers compensation if its products do not meet a consumer’s expectations.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 88 Which of the following real-world scenarios ...


  1. Why is it difficult to imitate the organizational culture of firms like Southwest Airlines and Zappos?
    1. ______

Their culture reflects complex relationships with their employees, customers, and suppliers.

They produce products that cannot be copied easily because of their complex designs.

The employees in the organization themselves are unaware of the factors contributing to their organizational culture.

It is not commercially viable for other companies to implement the same culture.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 89 Why is it difficult to imitate the organizat...


  1. Which of the following statements is true of organizational culture?
    1. ______

Changes in culture are too frequent to have any impact on strategic implementation.

It is better for founder CEOs to create a relevant culture, structure, and strategy in the early stages.

It is always better to focus on output control and performance than on organizational culture.

According to research, more than 50 percent of firms change culture successfully.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 90 Which of the following statements is true of...


  1. Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm’s economic value creation and
    1. ______

eventually gives way to core rigidity.

obeys the VRIO principles.

does not demonstrate causal ambiguity.

displays an absence of social complexity.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 91 Organizational culture can help a firm gain ...


  1. One of Black Mesa’s core values is to provide unbeatable customer service, a commitment introduced to the company by its founder more than 10 years ago. This value is expressed in the company’s “Always You” campaign, which promises a no-questions-asked returns policy and an offer to stitch the customer’s initials onto any item for free using a patented sewing technique, two features that are not offered by any of Black Mesa’s competitors. Although the campaign has resulted in a 10 percent decline in profits, Black Mesa has decided to continue to pursue its founder’s vision to reward customers and maintain employees’ sense of purpose. Why does Black Mesa’s culture, exemplified by the “Always You” campaign, fail to support a competitive advantage?
    1. ______

It does not increase economic value creation for the firm.

It is not a rare resource.

Always lacks founder imprinting.

The culture is not difficult to imitate.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > MC Qu. 92 One of Black Mesa’s core values is to ...


  1. Strategic control-and-reward systems are internal-governance mechanisms to align the________ of principals (shareholders) and agents (employees).
    1. ______

values

incentives

behavior

productivity


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 93 Strategic control-and-reward systems are...


  1. Which of the following best exemplifies the use of input controls?
    1. ______

McDonald’s use of standard operating procedures

GM’s use of the multidivisional strategy

Zappos’ use of monitoring-free customer service calls

Southwest Airlines’ use of employee friendliness


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 94 Which of the following best exemplifies the ...


  1. Delos Inc. is an apparel manufacturer. The management at Delos Inc. prefers moderate control over the operations of the different departments such as R&D, design, marketing, and sales. It allocates a budget to each function at the beginning of each quarter. This is an example of implementing control through
    1. ______

output controls.

input controls.

multidivisional strategy.

centralization.


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 95 Delos Inc. is an apparel manufacturer. The m...


  1. Why are controls like budgets and operating procedures that McDonald’s implements known as input controls?
    1. ______

They are independent of an organization’s culture.

They are implemented by corporate headquarters.

They are considered before employees make any decisions.

They are ad hoc and not codified.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 96 Why are controls like budgets and operating ...


  1. Sales for Company B have slowed, and profits are way down. Its executive team is threatening managers with demotions and employees with layoffs unless sales pick up considerably in the next six months. This is an example of
    1. ______

attempting to tap intrinsic employee motivation.

using extrinsic motivation as an output control mechanism.

using input controls to boost sales.

defining and directing employee behavior through explicit rules and standard operation procedures.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 97 Sales for Company B have slowed, and...


  1. Output controls can sometimes discourage collaboration among different strategic business units. However, more and more work requires creativity and innovation, especially in highly developed economies. One way firms are grappling with this issue is by
    1. ______

introducing results-only-work-environments to tap intrinsic motivations.

refining the budgeting process to encourage more department collaboration.

updating standard operating procedures to allow more process flexibility.

using output controls only when the goal is to ensure a predictable outcome.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 98 Output controls can sometimes discourage col...


  1. Which of the following is true of the process of organizing for competitive advantage?
    1. ______

To maintain competitive advantage, companies need to restructure as they grow and the competitive environment changes.

Strategy formulation and strategy implementation are independent activities.

Organizing for competitive advantage is a static and not a dynamic process.

Formulating an effective strategy is a necessary and sufficient condition for gaining and sustaining competitive advantage.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > MC Qu. 99 Which of the following is true of the proces...


  1. Nerissa sets up a business consulting firm in which the employees are motivated because they find their work interesting and creative. She carefully hires workers who fit well with their assigned tasks. She also clearly defines the results expected of each worker, but allows the workers to determine the means to these results. Which of the following best describes Nerissa’s business?
    1. ______

a firm that relies on high input controls to tap into intrinsic motivation

a firm that relies on high input controls to tap into extrinsic motivation

a firm that relies on high output controls to tap into intrinsic motivation

a firm that relies on high output controls to tap into extrinsic motivation


Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 100 Nerissa sets up a business consulting firm i...


  1. At 3M, employees are encouraged to spend up to 15 percent of their time on projects of their own choosing. If any of these projects look promising, 3M provides financing to further develop their commercial potential. This is an example of
    1. ______

using the ROWE framework to tap intrinsic employee motivation.

relying on extrinsic motivation.

taking advantage of strategy implementation.

using OKRs (Objectives and Key Results) to monitor objectives and outcomes.


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > MC Qu. 101 At 3M, employees are encouraged to spend...


  1. Successful________ requires managers to design and shape structure, culture, and control mechanisms.
    1. ______

strategy innovation

strategy formulation

strategy implementation

strategy diversification


Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > MC Qu. 102 Successful ________ requires managers to design...


  1. Why does business historian Alfred Chandler in his seminal book Strategy and Structure say that organizational structure must follow strategy? And why, in reality, does a firm’s strategy often follow its structure?





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-01 Define organizational design and list its three components.
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > SA Qu. 103 Why does business historian Alfred Chandler...


  1. What is founder imprinting, and what is its impact on a company? Give examples of founder imprinting.





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : How to Organize for Competitive Advantage
Source : Chapter 11 Test Bank > SA Qu. 104 What is founder imprinting, and what is its...


  1. What are the key elements of organizational structure? Define each element.





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > SA Qu. 105 What are the key elements of organizational ...


  1. What are the implications of centralization on strategic management processes in an organization?





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-03 Define organizational structure and describe its four elements.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > SA Qu. 106 What are the implications of centralization ...


  1. What are the characteristics of organic organizations?





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-04 Compare and contrast mechanistic organizations and organic organizations.
Topic : Organizational Hierarchy
Source : Chapter 11 Test Bank > SA Qu. 107 What are the characteristics of organic orga...


  1. What are the characteristics of mechanistic organizations? Explain with the help of an example.





Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 11-04 Compare and contrast mechanistic organizations and organic organizations.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > SA Qu. 108 What are the characteristics of mechanistic ...


  1. Discuss how a cost-leadership strategy is used with a functional structure.





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > SA Qu. 109 Discuss how a cost-leadership strategy is us...


  1. Discuss how a differentiation strategy is used with a functional structure.





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > SA Qu. 110 Discuss how a differentiation strategy is us...


  1. What are multidivisional structures? How are they implemented?





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : The Use of Multidivisional (or M-Form) Structure to Implement Corporate Diversification Strat
Source : Chapter 11 Test Bank > SA Qu. 111 What are multidivisional structures? How are...


  1. Describe a global matrix structure. Why do firms use it?





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > SA Qu. 112 Describe a global matrix structure. Why do f...


  1. Contrast closed and open innovation.





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-06 Evaluate closed and open innovation, and derive implications for organizat
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > SA Qu. 113 Contrast closed and open innovation.


  1. Discuss the "not-invented-here" syndrome with the help of an example.





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-06 Evaluate closed and open innovation, and derive implications for organizat
Topic : Organizational Design and Competitive Advantage
Source : Chapter 11 Test Bank > SA Qu. 114 Discuss the "not-invented-here" syndrome with ...


  1. What is organizational culture? What are the key elements of organizational culture?





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > SA Qu. 115 What is organizational culture? What are the...


  1. When and how do companies pursue an international strategy?





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-07 Describe the elements of organizational culture, and explain where organiz
Topic : Organizational Culture
Source : Chapter 11 Test Bank > SA Qu. 116 When and how do companies pursue...


  1. How do results-only-work-environments differ from output controls that depend on extrinsic motivation?





Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > SA Qu. 117 How do results-only-work-environments differ...


  1. Describe the organizational structure used for firms that are pursuing a global-standardization strategy.





Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 11-05 Describe different organizational structures and match them with appropria
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > SA Qu. 118 Describe the organizational structure used f...


  1. Compare and contrast the difference between input and output control mechanisms that a firm can employ.





Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > SA Qu. 119 Compare and contrast the difference between ...


  1. What are strategic control-and-reward systems and how are they used?





Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 11-08 Compare and contrast different strategic control-and-reward systems.
Topic : Organizational Structure and Controls
Source : Chapter 11 Test Bank > SA Qu. 120 What are strategic control-and-reward...


Document Information

Document Type:
DOCX
Chapter Number:
11
Created Date:
Aug 21, 2025
Chapter Name:
Chapter 11 Organizational Design Structure, Culture, And Control
Author:
Frank Rothaermel

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