MAN 4720 FINAL EXAM – ROUSSEAU
WITH COMPLETE SOLUTIONS
Organizational Design is the Process of... - ANSWER-Creating, implementing,
monitoring, and modifying the structure, processes, and procedures of an organization.
What are the Key Components of Organizational Design? - ANSWER--Structure
-Culture
-Control
Organizational Structure Determines... - ANSWER-- How efforts of individuals and
teams are orchestrated
- How resources are distributed
What are the building blocks of organizational structure? - ANSWER--Specialization
-Formalization
-Centralization
-Hierarchy
In an organizational structure, what is specialization? - ANSWER-Describes the degree
to which a task is divided into separate jobs
Specialization requires... - ANSWER-a tradeoff between depth and breadth of
knowledge.
Larger ventures have a ______ degree of specialization - ANSWER-High
Smaller ventures have a ______ degree of specialization - ANSWER-Low
In an organizational structure, what is formalization? - ANSWER-The extent to which
employee behavior is guided by rules and procedures.
Pros of Formalization - ANSWER--ensures consistent and predictable results
-safety and reliability
Cons of Formalization - ANSWER--slower decision making
-reduced innovation
-hindered customer service
In an organizational structure, what is centralization? - ANSWER--The degree to which
decision making is concentrated at the top of the organization.
-coordinates slow response time and reduced customer satisfaction
, centralization affects ______________. - ANSWER-Strategic Planning
How does centralization affect strategic planning? - ANSWER-- Top-down strategic
planning takes place in highly centralized organizations
- Planned emergence is found in more decentralized organizations
In an organizational structure, what is Hierarchy? - ANSWER--The formal, position-
based reporting lines
-Who reports to whom
Hierarchy brings a ______________. - ANSWER-Span of Control
A Mechanistic Organization has... - ANSWER--Much specialization and formalization.
-Tall hierarchies.
-Centralized decision making.
An Organic Organization has... - ANSWER--Little specialization and formalization.
-Flatter organizational structure.
-Decentralized decision making.
The relationship between firm strategy and structure is ________ and ________. -
ANSWER-interdependent, dynamic
different _________ require different __________. - ANSWER-firm stages, structure
What is Ambidexterity? - ANSWER--A firm's ability to address trade-offs over time
-Encourages strategic leaders to balance exploitation with exploration.
What is Exploitation? - ANSWER-Applying current knowledge to enhance firm
performance in the short term.
What is Exploration? - ANSWER-Searching for new knowledge that may enhance a
firm's future performance.
What are the Disadvantages of Functional Structure? - ANSWER--Suboptimal
communication across departments
-Cannot effectively address greater diversification
What is the solution to the issue of suboptimal communication? - ANSWER-cross-
functional teams
__________ is used by small firms with low organizational complexity - ANSWER-
Simple structure
The founders of Simple Structure usually... - ANSWER--Make all the strategic decisions
-Run day-to-day operations
WITH COMPLETE SOLUTIONS
Organizational Design is the Process of... - ANSWER-Creating, implementing,
monitoring, and modifying the structure, processes, and procedures of an organization.
What are the Key Components of Organizational Design? - ANSWER--Structure
-Culture
-Control
Organizational Structure Determines... - ANSWER-- How efforts of individuals and
teams are orchestrated
- How resources are distributed
What are the building blocks of organizational structure? - ANSWER--Specialization
-Formalization
-Centralization
-Hierarchy
In an organizational structure, what is specialization? - ANSWER-Describes the degree
to which a task is divided into separate jobs
Specialization requires... - ANSWER-a tradeoff between depth and breadth of
knowledge.
Larger ventures have a ______ degree of specialization - ANSWER-High
Smaller ventures have a ______ degree of specialization - ANSWER-Low
In an organizational structure, what is formalization? - ANSWER-The extent to which
employee behavior is guided by rules and procedures.
Pros of Formalization - ANSWER--ensures consistent and predictable results
-safety and reliability
Cons of Formalization - ANSWER--slower decision making
-reduced innovation
-hindered customer service
In an organizational structure, what is centralization? - ANSWER--The degree to which
decision making is concentrated at the top of the organization.
-coordinates slow response time and reduced customer satisfaction
, centralization affects ______________. - ANSWER-Strategic Planning
How does centralization affect strategic planning? - ANSWER-- Top-down strategic
planning takes place in highly centralized organizations
- Planned emergence is found in more decentralized organizations
In an organizational structure, what is Hierarchy? - ANSWER--The formal, position-
based reporting lines
-Who reports to whom
Hierarchy brings a ______________. - ANSWER-Span of Control
A Mechanistic Organization has... - ANSWER--Much specialization and formalization.
-Tall hierarchies.
-Centralized decision making.
An Organic Organization has... - ANSWER--Little specialization and formalization.
-Flatter organizational structure.
-Decentralized decision making.
The relationship between firm strategy and structure is ________ and ________. -
ANSWER-interdependent, dynamic
different _________ require different __________. - ANSWER-firm stages, structure
What is Ambidexterity? - ANSWER--A firm's ability to address trade-offs over time
-Encourages strategic leaders to balance exploitation with exploration.
What is Exploitation? - ANSWER-Applying current knowledge to enhance firm
performance in the short term.
What is Exploration? - ANSWER-Searching for new knowledge that may enhance a
firm's future performance.
What are the Disadvantages of Functional Structure? - ANSWER--Suboptimal
communication across departments
-Cannot effectively address greater diversification
What is the solution to the issue of suboptimal communication? - ANSWER-cross-
functional teams
__________ is used by small firms with low organizational complexity - ANSWER-
Simple structure
The founders of Simple Structure usually... - ANSWER--Make all the strategic decisions
-Run day-to-day operations
