MBA 705 Final questions and answers
During the crisis ✔✔an organizational spokesperson should communicate
effectively with the public to minimize the effect of the crisis
After the crisis ✔✔communication with the public should continue as needed and
the cause of the crisis should be uncovered
Trends in strategic management ✔✔1. Globalization
2. Growing influence of the Internet
3. Sustainability
4. Erosion of the low cost-differentiation dichotomy
5. Effective crisis management Organizational structure ✔✔The formal means by
which work is coordinated in an organization.
Simple structure ✔✔Each employee performs multiple tasks and the
owner/manager is involved in all aspects of the business—neither an
organizational chart nor formal assignment of responsibilities is necessary
Structure ✔✔Designates formal reporting relationships and defines the number of
levels in the hierarchy
Vertical growth ✔✔refers to an increase in the length of the organization's
hierarchy (i.e., levels of management).
, Span of control ✔✔The number of employees reporting to each manager
Tall organization ✔✔Composed of many hierarchal levels and narrow spans of
control
Flat organization (steep organization) ✔✔Has few levels in its hierarchy and a wide
span of control from top to bottom
Advantages of tall organizations ✔✔More effective communication and less
difficulty in planning
Advantages of flat organizations ✔✔Lower administrative costs and increased
authority for managers
Centralization ✔✔Most strategic and operating decisions are made at the top
because managers at higher levels are presumed to have greater experience and
expertise
Decentralization ✔✔Most strategic and operating decisions are made by
managers at the lower levels of the organization.
Seeks to push each decision to the lowest level where it can be made more
effectively
During the crisis ✔✔an organizational spokesperson should communicate
effectively with the public to minimize the effect of the crisis
After the crisis ✔✔communication with the public should continue as needed and
the cause of the crisis should be uncovered
Trends in strategic management ✔✔1. Globalization
2. Growing influence of the Internet
3. Sustainability
4. Erosion of the low cost-differentiation dichotomy
5. Effective crisis management Organizational structure ✔✔The formal means by
which work is coordinated in an organization.
Simple structure ✔✔Each employee performs multiple tasks and the
owner/manager is involved in all aspects of the business—neither an
organizational chart nor formal assignment of responsibilities is necessary
Structure ✔✔Designates formal reporting relationships and defines the number of
levels in the hierarchy
Vertical growth ✔✔refers to an increase in the length of the organization's
hierarchy (i.e., levels of management).
, Span of control ✔✔The number of employees reporting to each manager
Tall organization ✔✔Composed of many hierarchal levels and narrow spans of
control
Flat organization (steep organization) ✔✔Has few levels in its hierarchy and a wide
span of control from top to bottom
Advantages of tall organizations ✔✔More effective communication and less
difficulty in planning
Advantages of flat organizations ✔✔Lower administrative costs and increased
authority for managers
Centralization ✔✔Most strategic and operating decisions are made at the top
because managers at higher levels are presumed to have greater experience and
expertise
Decentralization ✔✔Most strategic and operating decisions are made by
managers at the lower levels of the organization.
Seeks to push each decision to the lowest level where it can be made more
effectively
