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Exam 10: Creating Effective Organizational Designs

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Question 21

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Operational decision making in a large business places excessive demands on top management of the firm.

A) True
B) False

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Question 22

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One disadvantage of a functional structure is that differences in functional orientation may impede organization coordination and communication.

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B) False

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Question 23

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In a simple structure where the owner manager makes most of the important decisions, extensive rules and regulations are used to maintain order.

A strategy of related diversification requires a need to reorganize only around product lines. This leads to a divisional structure.

The strategic business unit (SBU) and holding company structure are variants of the functional form of structure.

One of the challenges of an ambidexterity in a firm is that managers must effectively exploit the value of their existing assets and competencies to assure alignment between how value is being created in the short term and how activities are integrated and properly coordinated.

Three major contingencies that influence the chosen structure of a company are: the type of strategy that drives its foreign operations, its product diversity, and the extent to which the company is dependent on foreign sales.

The phrase that best defines a virtual organization is a(n)

Structures help to ensure that ____________ are used effectively in accomplishing the mission of the organization.

A matrix organization is organized strictly along product lines.

According to the text, the factor that most distinguishes a superior team from a good team is talent.

The virtual organization is characterized by participating firms which pursue a collective strategy that enables them to cope with environmental uncertainty through cooperative efforts.

Which of the following is a disadvantage of a functional type of organizational structure?

Firms that place too strong a priority on either adaptability or alignment can expect short term gains only.

Important advantages of a holding company structure include

Which of the following is considered to be an advantage of a matrix structure?

One of the disadvantages of a divisional structure is that the divisions often perceive themselves as being in competition with each other and are therefore unwilling to share information to help other divisions improve. ArcelorMittal found a solution which twins an efficient steel mill with a struggling one.

A simple organizational structure may lead to problems such as unclear boundaries of authority and few career advancement options.

Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of which type of organizational structure?

One of the challenges of an ambidexterity in a firm is that it must ensure that it remains proactive in expanding or modifying its product-market scope to anticipate and satisfy market conditions.