Question 1

The distinctive feature of project-based organizations is that the operating units-the project teams-are temporary.

Accepted Answer

Project-based organizations are characterized by temporary teams that are formed to complete a specific project or set of projects before disbanding. This is in contrast to other types of organizations where the operating units are permanent and have ongoing responsibilities.

Question 2

As companies and their industries mature,the need for efficiency and more centralized control,often results in companies replacing their functional structures with multidivisional structures.

Accepted Answer

As companies mature, they often move from multidivisional structures to more centralized functional structures to improve efficiency and control.

Question 3

Adhocracy is a structure where values,motivation,participation,and mutual respect,allow a high level of coordination without the need for formal control

Accepted Answer

Adhocracy is a non-traditional organizational structure that emphasizes values, motivation, participation, and mutual respect to achieve high levels of coordination and productivity without the need for formal control or hierarchy. This type of structure is often used in innovative, creative, and dynamic organizations that need to adapt quickly to changing market conditions or customer needs.

Question 4

The creation of business enterprises where a head office managed geographically-separate operational units was facilitated by:
A)The development of management as a practical science
B)Improvements in transportation and communication-especially the railroad and telegraph
C)The development of the multidivisional corporation
D)The introduction of limited liability

Accepted Answer

Improvements in transportation and communication-especially the railroad and telegraph allowed for easier and quicker communication, transportation of goods and personnel, and provided the ability to manage geographically-dispersed operational units. The other options did play a role in the evolution of business enterprises, but not specifically in the creation of head office managed geographically-separated units.

Question 5

In recent decades many large corporations have reorganized their matrix structures such that financial and strategic control is exercised through a single dimension.

Accepted Answer

Many corporations have streamlined their organizational structures to improve efficiency and control, often consolidating financial and strategic oversight into a single dimension to reduce complexity and enhance decision-making.

Question 6

The Tata Group,the Virgin Group,and Alphabet Inc.are examples of:
A)Multidivisional corporations.
B)Adhocracies.
C)Line-and-staff organizations.
D)Holding companies.

Accepted Answer

The Tata Group, the Virgin Group, and Alphabet Inc. are all examples of holding companies, which are parent companies that own subsidiary companies but do not typically engage in day-to-day operations or management of those subsidiaries.

Question 7

The pioneers of the multidivisional structure were:
A)Ford and General Motors
B)Standard Oil and Shell
C)Sears Roebuck and General Electric
D)DuPont and General Motors

Accepted Answer

DuPont and General Motors were the pioneers of the multidivisional structure, which allowed them to manage their diverse operations more effectively.

Question 8

According to James Thompson,"pooled interdependence" is the most intensive form of interaction between organizational members.

Accepted Answer

Pooled interdependence is the least intensive form of interaction, where each part contributes independently to the whole.

Question 9

The epithet "Great strategy; lousy implementation" is typically wrong because:
A)Strategies are typically formulated in the course of their implementation (i.e.they are "emergent")
B)Strategies whose formulation does not take account of their potential for implementation are not great strategies
C)Both (a)and (b)
D)Neither (a)nor (b)

Accepted Answer

The answer of The epithet "Great strategy; lousy implementation" is...

Question 10

The success of the multidivisional structure as an organizational form was because:
A)Line-and-staff structures allowed companies to serve to a broader geographical area
B)The separation of strategic from operational decision allowed corporate management to exercise more effective strategic and financial control
C)Divisions were forced to compete with one another for corporate resources
D)It permitted decision making ot be decentralized

Accepted Answer

The separation of strategic from operational decision allowed corporate management to exercise more effective strategic and financial control. With the multidivisional structure, each division had its own strategic and operational decisions, leading to centralized financial control at the corporate level. This allowed for greater efficiency and effectiveness in decision-making.

Question 11

According to Henry Mintzberg,organizational structure can be defined as:
A)The ways in which labor is divided into distinct tasks,and coordination is achieved among these tasks
B)The ways in which tasks are divided among divisions and managerial coordination achieved from the highest level of the organization
C)The allocation of an organization's resources to divisions and departments
D)The way in which coordination and cooperation between productive tasks is organized

Accepted Answer

Henry Mintzberg defines organizational structure as the ways in which labor is divided into distinct tasks, and coordination is achieved among these tasks. This emphasizes the importance of how tasks and responsibilities are distributed among members of an organization and how they work together to achieve common goals. Option B emphasizes the managerial aspect of coordination, while Option C emphasizes the allocation of resources rather than the actual structure of tasks and coordination. Option D is also related to coordination, but it does not capture the full definition of organizational structure.

Question 12

The tendency for societies to revert to subsistence economies when the fabric of civilization breaks down is because:
A)Shops cannot operate when there is a risk of looting
B)Uncertainty reinforces the role of the family and family-based production
C)Specialization and the division of labor require an exchange economy which depends upon mutual trust and the rule of law
D)The modern economy requires money which requires a stable national government

Accepted Answer

The modern economy and its division of labor require a reliable exchange economy based on mutual trust and the rule of law. If civilization breaks down and uncertainty increases, it becomes difficult to trust others and engage in this type of exchange. As a result, societies tend to revert to family-based production and subsistence economies. Money and a stable government are also required for the modern economy to function properly, but they are not the primary reasons for the shift towards subsistence.

Question 13

In most large companies strategic planning is:
A)Primarily a top-down process
B)Primarily a process of managed emergence
C)A process that combines top-down initiatives and directives and bottom-up proposals
D)A formalized ritual that has little to do with real strategy formulation

Accepted Answer

In most large companies, strategic planning is a process that combines top-down initiatives and directives with bottom-up proposals. This allows for input and ideas from all levels of the organization while still ensuring that the overall strategy is aligned with the goals and vision of the company as a whole. This approach allows for a more comprehensive and collaborative approach to strategic planning.

Question 14

During the 19th century the principle source of ideas about how to organize large business enterprises derived from:
A)Max Weber's principles of bureaucracy
B)The ideas of industrial leaders such as Andrew Carnegie,John D.Rockefeller and Alfred Krupp
C)Frederick Taylor's "scientific management" The introduction of limited liability,the railroad,and the telegraph
D)The military

Accepted Answer

The answer of During the 19th century the principle source...

Question 15

The "agency problem" refers to:
A)The inability the owners of a company to control the managers they appoint to run the company
B)The misalignment of goals between the shareholders and managers of a company
C)The misalignment of goals between a principal and his/her agent
D)The tendency for the CEOs of public corporations to receive excessive compensation

Accepted Answer

The agency problem refers to the misalignment of goals between a principal (such as a shareholder) and his/her agent (such as a manager) who is acting on the principal's behalf. The agent may pursue their own self-interest rather than the interests of the principal. This can be seen in situations where managers prioritize their own career advancement or personal gain over maximizing shareholder value.

Question 16

The main reason that most entrepreneurial start-up companies adopt a formalized process of strategic planning processes at some stage of their development is:
A)To allow quantitative analysis to be applied to strategic decision
B)To limit the power of founders
C)To facilitate coordination and control as a company grows in size and complexity
D)To enable decisions to become focused more on long term development

Accepted Answer

As a company grows in size and complexity, it becomes increasingly difficult to coordinate and control all aspects of the business. Formalized strategic planning processes help to facilitate coordination and control in a systematic way. This enables the company to respond to changes in the competitive environment and build a sustainable competitive advantage. Additionally, formalized strategic planning processes help to ensure that decisions are focused on long-term development rather than short-term gains.

Question 17

A fundamental task of organization is to manage:
A)Cooperation and coordination
B)The division of labor into separate tasks
C)The division of labor into separate tasks and their subsequent integration
D)The problem of agency

Accepted Answer

Managing the division of labor into separate tasks and their subsequent integration is a fundamental task of organization. This involves breaking down complex tasks into smaller, more manageable parts, assigning those tasks to individuals or teams, and then coordinating and integrating the results of those individual efforts back into the larger goal. This ensures efficiency, productivity, and alignment of efforts towards the organization's overall mission. Cooperation and coordination (A) are important aspects of managing the division of labor, but they are just one part of the larger task. The problem of agency (D) refers to the challenge of aligning the interests of individual agents (e.g. employees, contractors) with the interests of the organization, which is also important but not directly related to managing the division of labor.

Question 18

The primary mechanisms through which companies translate strategic plans into action are:
A)Statements of vision and mission.
B)Operating plans and capital expenditure budgets.
C)CEO leadership.
D)Resolutions by the board of directors.

Accepted Answer

Operating plans and capital expenditure budgets are the most direct and practical ways for companies to turn their strategic plans into actionable steps. These plans outline specific goals, timelines, and resource allocations, and serve as a roadmap for managers and employees to execute the company's strategy. While vision and mission statements, CEO leadership, and board resolutions can provide guidance and direction, they are often too abstract or high-level to directly drive action within the company.

Question 19

In most large companies the strategic planning cycle begins with:
A)Top management setting strategic priorities
B)Business units developing business plans
C)The financial requirements set by investors and the stock market
D)Guidelines developed by the board of directors

Accepted Answer

The strategic planning cycle in most large companies typically begins with top management setting strategic priorities. This involves defining the organization's mission, vision, and values, identifying the key opportunities and challenges facing the business, and determining the overall direction and goals of the company. Once these priorities are established, business units can develop their own plans and initiatives in alignment with the broader strategic direction. While financial requirements, board guidelines, and investor expectations may also play a role in the planning process, they typically come after the initial strategic priorities have been set by top management.

Question 20

Jay Galbraith and Ed Lawler's comment that: "Ultimately,there may be no long-term sustainable advantage that the ability to organize and manage" may be justified by:
A)The impact of disruptive technologies in most industries
B)The realities of Schumpeterian competition
C)The need for firms to continually develop and renew their organizational capabilities
D)Of all the most strategically important resources,good managers are the scarcest

Accepted Answer

The statement by Galbraith and Lawler highlights the importance of developing and managing organizational capabilities. This is because organizations need to continually adapt and renew themselves to stay competitive in the constantly changing business environment. This need for continual development and renewal of capabilities justifies the statement that there may be no long-term sustainable advantage that the ability to organize and manage. Hence, option C is the correct answer. The other options do not directly address the importance of organizational capabilities in creating sustainable advantages.

Quiz 6: Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The distinctive feature of project-based organizations is that the operating units-the project teams-are temporary.

As companies and their industries mature,the need for efficiency and more centralized control,often results in companies replacing their functional structures with multidivisional structures.

Adhocracy is a structure where values,motivation,participation,and mutual respect,allow a high level of coordination without the need for formal control

The creation of business enterprises where a head office managed geographically-separate operational units was facilitated by:

In recent decades many large corporations have reorganized their matrix structures such that financial and strategic control is exercised through a single dimension.

The Tata Group,the Virgin Group,and Alphabet Inc.are examples of:

The pioneers of the multidivisional structure were:

According to James Thompson,"pooled interdependence" is the most intensive form of interaction between organizational members.

The epithet "Great strategy; lousy implementation" is typically wrong because:

The success of the multidivisional structure as an organizational form was because:

According to Henry Mintzberg,organizational structure can be defined as:

The tendency for societies to revert to subsistence economies when the fabric of civilization breaks down is because:

In most large companies strategic planning is:

During the 19th century the principle source of ideas about how to organize large business enterprises derived from:

The "agency problem" refers to:

The main reason that most entrepreneurial start-up companies adopt a formalized process of strategic planning processes at some stage of their development is:

A fundamental task of organization is to manage:

The primary mechanisms through which companies translate strategic plans into action are:

In most large companies the strategic planning cycle begins with:

Jay Galbraith and Ed Lawler's comment that: "Ultimately,there may be no long-term sustainable advantage that the ability to organize and manage" may be justified by: