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1. What is the process of creating, implementing, monitoring, and modifying
the structure, processes, and procedures of an organization? - Correct
Answer: Organizational Design
2. What are the Key Components on Organizational Design? - Correct
Answer: 1. Structure
Culture
aControl
3. Why do established firms fail? - Correct Answer: Failure to respond to
shifts in the external or internal environment
4. How can you master Organizational Design? - Correct Answer: Mastery
of it with the current environment and success if usually measured with
Financial metrics
5. What is Organizational Inertia? - Correct Answer: is the organization's
ability to make internal changes in the face of significant external changes
,6. What are some examples of Internal shifts? - Correct Answer: 1.
Accelerated Growth
2. Change in the business model
3. Change in TMT
4. Mergers and Acquisitions
7. What are some examples of External Shifts? - Correct Answer: PESTEL
Factors
8. What does Organizational Structure determine? - Correct Answer: How
efforts of individuals and teams are orchestrated and how resources are
distributed
9. What are the 4 building blocks of Organizational Structure? - Correct
Answer: 1. Specialization
2. Formalization
3. Centralization
4. Hierarchy
10.What is specialization? - Correct Answer: Describes the degree to which
a task is divided into separate jobs. requires a tradeoff between depth and
Breadth of knowledge
Large Firms: High degree
Small Firms: Low degree
11.What is Formalization? - Correct Answer: The extent to which employee
behaivor is guided by the rules and procedure
,12.What are the Pros of Formalization? - Correct Answer: 1. Consistent and
Predictable results
2. Safety and Reliability
13.What are the cons of Formalization? - Correct Answer: 1. Slower
Decision making
2. Reduced Innovation
3. Hindered customer service
14.What would be an example of Decentralization? - Correct Answer: Face-
to-Face communication instead of email
15.What is Centralization? - Correct Answer: The degree to which decision
making is concentrated at the top of the organization. Usually also features
Top-down strategic planning
16.What are the cons of Centralization? - Correct Answer: 1. Slow response
time
2. Reduced customer satisfaction
3. Affects strategic planning
17.What is Planned Emergence? - Correct Answer: strategy process in
which organizational structure and systems allow bottom-up strategic
initiatives to emerge and be evaluated and coordinated by top management
(More common in Decentralized firms)
, 18.What is Hierarchy? - Correct Answer: The formal position-based
reporting lines (who reports to who)
19.What is Span of control? - Correct Answer: The # of employees that
report directly to a manager
20.What is Mechanistic Organization? - Correct Answer: 1. Much
Specialization and Formalization
2. Tall Hierarchies
3. Centralized Decision making
Ex: McDonalds
21.What is a Organic Organization? - Correct Answer: 1. Little Specialization
and Formalization
2. Flatter Organizational structure (less hierarchy and space between
managers and employees)
3. Decentralized Decision making
4. Fosters R&D as a core competency
Ex: Software companies building innovative products
22.The relationship between Firm strategy and structure is? - Correct
Answer: Interdependent and Dynamic
23.What are the Characteristics of a Simple Structure? - Correct Answer: 1.
Used by small firms with low organizational complexity
2. Little or no sophisticated structures and managers
3. Low degree of specialization and formalization
4. Founders make strategic decisions and run day-to-day operations