WELL DETAILED ANSWERS|LATEST
Companies that seek to pursue a cost leadership strategy will most likely make
organizational design decisions that emphasize
- flexibility.
- creativity.
- operational efficiency.
- speed. - 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. - 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. - ANSWER It
is ideal for organizations that have constantly changing environments.
1
,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. -
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. - 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 - ANSWER Divisional
The process by which managers transfer decision rights to individual employees is known as
2
, - initiation.
- simulation.
- delegation.
- disposition. - 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. - 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. - ANSWER division of labor.
_____ involves developing relationships with parties outside a firm to increase the value of
the firm's offerings.
- Cooperation
- Coordination
- Connection
3
Companies that seek to pursue a cost leadership strategy will most likely make
organizational design decisions that emphasize
- flexibility.
- creativity.
- operational efficiency.
- speed. - 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. - 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. - ANSWER It
is ideal for organizations that have constantly changing environments.
1
,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. -
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. - 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 - ANSWER Divisional
The process by which managers transfer decision rights to individual employees is known as
2
, - initiation.
- simulation.
- delegation.
- disposition. - 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. - 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. - ANSWER division of labor.
_____ involves developing relationships with parties outside a firm to increase the value of
the firm's offerings.
- Cooperation
- Coordination
- Connection
3
