MBA 705 Minsun Kim Exam 4
questions and answers
Benchmarks should be specific, associated with the strategy's success, and within
the firm's control. ✔✔Benchmarks should be __________.
A. broad, not specific
B. associated with the strategy's success
C. outside the firm's control
D. all of the above
A
According to the balanced scorecard approach to measuring performance,
measurement is based on an array of quantitative and qualitative factors, such as
ROA, market share, customer loyalty and satisfaction, speed, and innovation.
✔✔Which of the following approaches bases the measurement of performance
on an array of quantitative and qualitative factors instead of a single quantitative
measure in the organization, such as profitability?
A. balanced scorecard
B. PIMS analysis
C. competitive benchmarking
D. none of the aboveOrganizational Structure ✔✔refers to the formal means by
which work is coordinated in an organization. The structure exists to provide
control and coordination for the organization
,Simple structure ✔✔a form of organization in which in a new business, each
employee often performs multiple tasks and the owner/manager is involved in all
aspects of the business
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 ✔✔compromised of many hierarchical levels and narrow spans
of control-- a tall organization tends to be best suited for a stable environment
Advantage: more effective communication and less difficulty in planning
Flat Organization ✔✔has few levels in its hierarchy and a wide span of control
from top to bottom
Advantage: lower administrative costs and increased authority for managers
Centralization ✔✔most strategic and operating decisions are made by managers
at the top of the organization structure
Decentralization ✔✔most strategic and operating decisions are made by
managers at lower levels of the organization
Horizontal Growth ✔✔an increase in the breadth of an organization's structure
, Downsizing ✔✔occurs when one or more hierarchical levels- typically middle
managers - is eliminated
Four Options for Structural Forms ✔✔1. Functional Structure
2. Product Divisional Structure
3. Geographic Divisional Structure
4. Matrix structure
(product and geographic divisional structures are also called multidivisional or M-
form structures)
Functional Structure ✔✔- each subunit of the organization engages in firm-wide
activities related to a particular function, such as marketing, HR, finance, or
production
-common to new organizations
-emphasizes specialization (Groups specialists)
-fosters development of economies of scale
-addresses quality concerns well
-the most centralized structure
Product Divisional Structure ✔✔-divides the organization's activities into self-
contained entities, each responsible for producing, distributing, and selling its own
products
questions and answers
Benchmarks should be specific, associated with the strategy's success, and within
the firm's control. ✔✔Benchmarks should be __________.
A. broad, not specific
B. associated with the strategy's success
C. outside the firm's control
D. all of the above
A
According to the balanced scorecard approach to measuring performance,
measurement is based on an array of quantitative and qualitative factors, such as
ROA, market share, customer loyalty and satisfaction, speed, and innovation.
✔✔Which of the following approaches bases the measurement of performance
on an array of quantitative and qualitative factors instead of a single quantitative
measure in the organization, such as profitability?
A. balanced scorecard
B. PIMS analysis
C. competitive benchmarking
D. none of the aboveOrganizational Structure ✔✔refers to the formal means by
which work is coordinated in an organization. The structure exists to provide
control and coordination for the organization
,Simple structure ✔✔a form of organization in which in a new business, each
employee often performs multiple tasks and the owner/manager is involved in all
aspects of the business
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 ✔✔compromised of many hierarchical levels and narrow spans
of control-- a tall organization tends to be best suited for a stable environment
Advantage: more effective communication and less difficulty in planning
Flat Organization ✔✔has few levels in its hierarchy and a wide span of control
from top to bottom
Advantage: lower administrative costs and increased authority for managers
Centralization ✔✔most strategic and operating decisions are made by managers
at the top of the organization structure
Decentralization ✔✔most strategic and operating decisions are made by
managers at lower levels of the organization
Horizontal Growth ✔✔an increase in the breadth of an organization's structure
, Downsizing ✔✔occurs when one or more hierarchical levels- typically middle
managers - is eliminated
Four Options for Structural Forms ✔✔1. Functional Structure
2. Product Divisional Structure
3. Geographic Divisional Structure
4. Matrix structure
(product and geographic divisional structures are also called multidivisional or M-
form structures)
Functional Structure ✔✔- each subunit of the organization engages in firm-wide
activities related to a particular function, such as marketing, HR, finance, or
production
-common to new organizations
-emphasizes specialization (Groups specialists)
-fosters development of economies of scale
-addresses quality concerns well
-the most centralized structure
Product Divisional Structure ✔✔-divides the organization's activities into self-
contained entities, each responsible for producing, distributing, and selling its own
products
