Question 1

In Japan, performance rather than seniority has traditionally been the key factor in determining pay.

Accepted Answer

The answer of In Japan, performance rather than seniority has...

Question 2

Resistance to change can be considered the single greatest threat to successful strategy implementation.

Accepted Answer

Resistance to change can come from various sources including employees, managers, customers, suppliers, and other stakeholders. Without proper communication, training, and engagement, resistance can derail even the best-planned strategies. Therefore, managing resistance is critical to realizing the full potential of a strategic plan.

Question 3

Reengineering does not usually affect the organizational structure or chart, nor does it imply job loss or employee layoffs.

Accepted Answer

The answer of Reengineering does not usually affect the organizational...

Question 4

People's anxieties are raised with the thought of change because they fear economic loss, inconvenience, uncertainty, and a break in normal social patterns.

Accepted Answer

People tend to resist change because they fear the potential negative consequences such as economic loss, inconvenience, uncertainty, and a break in normal social patterns. This can create anxiety and a reluctance to embrace new ideas or ways of doing things.

Question 5

In terms of number of employees, restructuring usually involves increasing the size of the firm.

Accepted Answer

Restructuring can involve reducing the number of employees in order to improve efficiency and reduce costs.

Question 6

Restructuring in many firms has made a manager's job an invisible, thankless role.

Accepted Answer

Restructuring often leads to downsizing and changes in job roles, which can result in a manager's job becoming less visible and appreciated. The focus may shift to meeting financial targets and cost-cutting measures, rather than recognizing the contributions of individuals in managerial positions.

Question 7

Because activities are organized according to the way work is actually performed, a divisional structure by process is similar to the matrix structure.

Accepted Answer

The answer of Because activities are organized according to the...

Question 8

Most large companies have abandoned the functional structure in favor of decentralization.

Accepted Answer

Decentralization allows for greater flexibility and adaptability in response to market changes, customer needs, and competitive pressures. This trend has been observed across industries and has resulted in a shift away from traditional hierarchies and departmental structures.

Question 9

When developing an organizational chart, the title president should be reserved for the top executive of the firm.

Accepted Answer

The answer of When developing an organizational chart, the title...

Question 10

With a divisional structure by customer, an organization can effectively cater to the requirements of clearly defined customer groups.

Accepted Answer

With a divisional structure by customer, each division can focus solely on the needs and preferences of their specific customer group, resulting in more targeted and effective customer service.

Question 11

With a divisional structure, it is possible that competition between divisions may become so intense that it leads to improved sharing of ideas and resources for the common good of the firm.

Accepted Answer

The answer of With a divisional structure, it is possible...

Question 12

The most complex of all organizational structures is a matrix structure.

Accepted Answer

A matrix structure typically combines functional and project-based structures, creating a complex and dynamic organization that requires strong communication and coordination.

Question 13

In developing an organizational chart, avoid having a particular person reporting to more than one person above them in the chain of command.

Accepted Answer

Having a particular person report to multiple superiors can create confusion and conflict in decision-making, as well as undermine the authority of those above them in the chain of command. It is important to establish clear lines of communication and a defined hierarchy in the organizational chart.

Question 14

Restructuring is also called rightsizing.

Accepted Answer

Restructuring and rightsizing refer to the same process of reorganizing a company or business to make it more efficient and effective.

Question 15

A dual bonus system based on both annual objectives and long-term objectives is becoming common.

Accepted Answer

This statement is true. Many companies are now implementing dual bonus systems that reward employees for both achieving their annual goals and contributing to longer-term objectives. This approach helps to balance the need for short-term results with the importance of investing in the organization's future success.

Question 16

The focus of restructuring is changing the way work is actually carried out.

Accepted Answer

The answer of The focus of restructuring is changing the...

Question 17

When developing an organizational chart, it is not wise to recommend a dual title for just one executive.

Accepted Answer

It is not recommended to give dual titles to one executive as it can create confusion and ambiguity within the organization. Each person should have a clearly defined role and responsibility to avoid any misunderstandings or conflicts.

Question 18

Six Sigma is generally equally successful in retail firms and manufacturing firms.

Accepted Answer

Six Sigma methodologies were originally developed for manufacturing processes, where they have had significant success in reducing defects and improving quality. In retail firms, while Six Sigma can still be applied and provide benefits, the nature of retail operations—being more service-oriented and customer-focused—means that the implementation and outcomes of Six Sigma can differ, making it not equally successful across both sectors. Retail firms may face challenges in directly applying manufacturing-oriented Six Sigma techniques without adaptation to their service-focused processes.

Question 19

A functional structure can be effective at eliminating short-term and narrow thinking.

Accepted Answer

A functional structure can lead to silos and a focus only on individual functions or departments, resulting in narrow thinking and a lack of collaboration across the organization.

Question 20

With the matrix structure it is common for functional resources to be duplicated.

Accepted Answer

The answer of With the matrix structure it is common...

Quiz 7: Implementing Strategies: Management and Operations Issues