Question 1

In a related multidivisional structure, the concept of corporate culture is meaningless.

Accepted Answer

While each division may have its own subculture, the overall corporate culture still plays an important role in shaping the organization's values and norms. The corporate culture can also influence the way decisions are made and how resources are allocated among the different divisions.

Question 2

Organizational structure contributes to strategy formulation by providing the framework of tasks and roles that reduce transaction difficulties and allows employees to think and behave in ways that enable a company to achieve superior performance.

Accepted Answer

Organizational structure provides a clear hierarchy of tasks and responsibilities, and this clarity helps employees work towards the strategic goals of the company. By reducing transaction costs, employees are able to focus on their assigned tasks and are able to collaborate more effectively, which ultimately leads to superior performance.

Question 3

A division is a way of grouping functions to allow an organization to better produce and dispose of its goods and services.

Accepted Answer

A division is a commonly used organizational structure that groups related functions together to improve efficiency and effectiveness in producing and disposing of goods and services.

Question 4

Control through culture is ineffective because employees do not internalize values.

Accepted Answer

Control through culture can be highly effective as employees often internalize the values and norms of the organization, which guides their behavior and decision-making in alignment with the company's goals.

Question 5

Control systems at higher levels of management should provide the basis for lower-level managers to design their control systems.

Accepted Answer

Control systems at higher levels of management should establish the overall objectives and standards, which can be used by lower-level managers to develop their control systems. This ensures that all levels of the organization are working towards the same goals and objectives.

Question 6

Bradley is a new employee in the sales department at a local car dealership. In his first few months on the job, he will be learning the norms and values of the organization. This refers to organizational socialization.

Accepted Answer

Organizational socialization refers to the process by which new employees learn the norms, values, and behaviors expected in an organization.

Question 7

Organization architecture is the interaction of structure, controls & incentives, people, processes, and culture within the organization.

Accepted Answer

Organization architecture includes all of these components, and they interact with each other to shape the way the organization functions.

Question 8

Effective organizational design can allow a company to obtain a competitive advantage, but it has no impact on profitability.

Accepted Answer

Effective organizational design can impact profitability by increasing efficiency, reducing costs, improving communication and collaboration, and enhancing customer satisfaction. A well-designed organization can also facilitate innovation and adaptability to changing market conditions, which can lead to increased revenue and profits.

Question 9

The reward system affects motivation; however, the type of organizational culture that develops in a company is primarily affected by the founder's values and not the reward system.

Accepted Answer

The answer of The reward system affects motivation; however, the...

Question 10

Span of control refers to the number of subordinates who report directly to one supervisor.

Accepted Answer

Span of control is defined as the number of subordinates who report directly to one supervisor, therefore the statement is true.

Question 11

Organizational structure is at the core of an organizations architecture.

Accepted Answer

The answer of Organizational structure is at the core of...

Question 12

Competition for resources is one of the drawbacks of the multidivisional structure.

Accepted Answer

In a multidivisional structure, divisions may compete with each other for resources such as funding, personnel, and marketing support. This can result in inefficiencies and conflicts within the organization.

Question 13

An important purpose of control systems is to motivate employees to work toward increasing efficiency, quality, innovation, and responsiveness to customers.

Accepted Answer

Control systems provide feedback on employees' performance, which can motivate them to improve and meet organizational goals such as increasing efficiency, quality, innovation, and responsiveness to customers.

Question 14

In a multidivisional structure, corporate managers can compare the performance of one division to another in terms of its cost structure or the profit it generates.

Accepted Answer

This is correct. Multidivisional structure allows for comparison among divisions in terms of their costs and profits.

Question 15

In a firm with a multidivisional structure, corporate managers oversee the actions of divisional managers.

Accepted Answer

In a multidivisional structure, there are multiple divisions operating under the same corporate umbrella. Corporate managers are responsible for overseeing the actions of divisional managers to ensure that each division is aligned with the overall corporate strategy and goals.

Question 16

In the multidivisional structure, each division typically contains only a partial set of value chain activities.

Accepted Answer

In a multidivisional structure, each division typically operates as a separate business or profit center, containing most or all of the value-chain activities necessary to produce and market its own products or services.

Question 17

Control systems can help managers evaluate how efficiently a company is producing goods and providing services.

Accepted Answer

Control systems provide managers with regular feedback on operational activities, allowing them to identify any inefficiencies and make necessary changes to improve efficiency in production and service delivery.

Question 18

The organizational hierarchy is flatter in a multidivisional structure than in a product or functional structure.

Accepted Answer

The answer of The organizational hierarchy is flatter in a...

Question 19

Different divisions in a firm with a multidivisional structure are not given authority to adopt their own organizational structures.

Accepted Answer

Different divisions in a firm with a multidivisional structure are given authority to adopt their own organizational structures. This allows them to tailor their structure to their specific needs and goals, while still being part of a larger overall structure.

Question 20

The purpose of organizational structure is to provide managers with specific feedback on how well an organization and its members are performing.

Accepted Answer

The purpose of organizational structure is to define how tasks and responsibilities are divided and coordinated within an organization. It does not provide feedback on performance. However, a well-designed organizational structure can enhance communication, accountability, and efficiency, which can in turn improve performance.

Quiz 12: Implementing Strategy Through Organization