MGMT Exam 2 - Multiple Choice Questions And Answers Guaranteed Solutions.

Companies that seek to pursue a cost leadership strategy will most likely make organizational design decisions that emphasize - flexibility. - creativity. - operational efficiency. - speed. - correct answers operational efficiency. An advantage of the bureaucratic approach to organizational control is that it - elicits commitment. - can withstand high turnover. - can easily adapt to the environment. - encourages employees to be self-regulating. - correct answers can withstand high turnover. Which of the following statements is true of a clan approach to control? - It involves high levels of supervision and extensive rules. - It is ideal for large organizations operating in steady environments. - It is appropriate for price-competitive and cost-sensitive industries. - It is ideal for organizations that have constantly changing environments. - correct answersIt is ideal for organizations that have constantly changing environments. Which of the following is a disadvantage of a functional organizational structure? - It does not facilitate a straightforward approach to supervision and management. - It is unsuitable for small businesses or businesses with a limited number of products or services. - It fails to support an easy flow of communication in a firm. - It is not suited to deal with the environmental changes in an organization. - correct answersIt is not suited to deal with the environmental changes in an organization. Which of the following is a valid difference between a divisional and a functional organizational structure? - Compared with a functional structure, a divisional structure allows for lesser accountability. - In divisional structures, core functions are often duplicated in each division. - There is greater potential for competitive behavior between divisions in a functional structure. - Employees in a divisional structure often develop more expertise than those in a purely functional structure. - correct answersIn divisional structures, core functions are often duplicated in each division. Which of the following organizational structures is most likely to have the highest levels of accountability? - Functional - Network - Matrix - Divisional - correct answersDivisional The process by which managers transfer decision rights to individual employees is known as - initiation. - simulation. - delegation. - disposition. - correct answersdelegation. An organizational structure characterized by formal structures that control employee behavior in a top-down, hierarchical fashion is known as a - centralized organizational structure. - network organizational structure. - behaviorist organizational structure. - decentralized organizational structure. - correct answerscentralized organizational structure. As a firm matures and grows in size, it tends to emphasize - open boundaries. - less job specialization. - division of labor. - broad decision rights. - correct answersdivision of labor. _____ involves developing relationships with parties outside a firm to increase the value of the firm's offerings. - Cooperation - Coordination - Connection - Capability development - correct answersConnection A firm can become more customer-centric by - developing a cooperative environment in which workers are given incentives for working across silos to deliver customer solutions. - increasing the amount of informal structures within the organization. - ensuring that employees do not work across multiple products and services while creating connections across the boundaries of the firm. - adopting new functional or divisional units to concentrate exclusively on the sales and promotion departments respectively. - correct answersdeveloping a cooperative environment in which workers are given incentives for working across silos to deliver customer solutions. Which of the following is true of organizational culture? - Organizations with strong cultures emphasize individualism over collectivism. - Organizational culture and organizational design are independent of each other. - The power structure of a company can help one decipher its culture. - An organization with a strong culture is one where no punishment system exists. - correct answersThe power structure of a company can help one decipher its culture. Which of the following is a consequence of having a strong organizational culture? - It often results in employees being detached and reluctant to take up responsibility for the overall business performance. - An organization with a strong culture tends to experience high levels of employee turnover. - A strong culture can make adapting to change more difficult. - It results in ambiguity of job roles as the organization's expectations are not explicitly stated. - correct answersA strong culture can make adapting to change more difficult. Cultures that form around geographic or organizational units in a company are called - subcultures. - counter cultures. - micro cultures. - intracultures. - correct answerssubcultures. The artifacts of an organization are - the profits that it plans to make in the next three quarters. - the personal beliefs, values, and opinions held by its employees. - a set of assumptions that point to the underlying essence of why members of the organization act as they do. - its visible organizational structures, processes, and languages. - correct answersits visible organizational structures, processes, and languages. In a formal organization, the backbone of culture generally begins with - the culture of the nation in which the firm operates. - the founder of the organization. - the employees of the firm. - the firm's customers. - correct answersthe founder of the organization. A leadership approach is most likely to be successful when a leader of a firm - refrains from establishing and abiding by a clear set of rules and values. - discourages monetary rewards for achievement. - rewards achievement with nonpay perks such as new assignments. - keeps a tight rein on his employees to ensure that they follow orders. - correct answersrewards achievement with nonpay perks such as new assignments. _____ is the process of understanding how work gets done and how individuals should interact in an organization. - Socialization - Diversification - Delegation - Vertical integration - correct answersSocialization The first stage of the process by which organizational commitment is achieved is - compliance. - internalization. - identification. - idealization. - correct answerscompliance. During acquisitions and mergers, the most challenging goal to meet is to - fully merge the two cultures into a new one. - change the organizational culture of the parent company to better fit that of the acquired company. - ask the employees of the acquired company to form a new culture in their organization. - change the culture of the company that is acquired and make it fit the parent company. - correct answersfully merge the two cultures into a new one. Progressive organizations view human resources as a - necessary evil. - cost to be minimized. - valuable resource that can be optimized. - means to look good in the eyes of other stakeholders. - correct answersvaluable resource that can be optimized. Which of the following stages of growth of a company is characterized by functional integration?