MGMT Exam 2 - Multiple Choice Study Guide With Complete Answers.

Companies that seek to pursue a cost leadership strategy will most likely make organizational design decisions that emphasize - flexibility. - creativity. - operational efficiency. - speed. - correct answer 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 answer 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 answer It 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 answer It 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 answer In 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 answer Divisional The process by which managers transfer decision rights to individual employees is known as - initiation. - simulation. - delegation. - disposition. - correct answer delegation. 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 answer centralized 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 answer division 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 answer Connection 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.