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CHAPTER 2: Strategy, Organizational Design, and Effectiveness

True/False Indicate whether the statement is true or false. 1. An organizational strategy is a plan for interacting with the competitive environment to achieve those goals desired by the organization. ANSWER: T POINTS: 0 REF:

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2. Michael Porter is attributed with introducing a strategy framework, which describes four possible strategies managers may engage in, in order for the organization to remain harmonious with its external environment. ANSWER: F POINTS: 0 REF:

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3. An analyzer strategy, according to Miles & Snow's Typology, is one that seeks to respond to environmental threats and opportunities in a situation-to-situation fashion. Often times, organizations engaging this type of strategy do not have a guiding mission or goal. ANSWER: F POINTS: 0 REF:

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4. The internal process approach is impacted by such indicators of organizational effectiveness as its ability to respond to changes in the environment and its bargaining position. ANSWER: F POINTS: 0 REF:

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Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Benjamin owns a multimillion-dollar automobile manufacturing firm in Ontario. He is proud of the expert management teams found within his organization. Of the following, which group would most likely be in control of making decisions that are focused on the organization's overall goals and strategy? a. Production employees b. Production managers c. Top management d. First line managers ANSWER: C POINTS: 0 / REF:

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2. An organization's mission or official goals statement serves many purposes. Acting as a _______ is considered to be one of the primary purposes for this type of organizational instrument. a. communication tool b. shareholder's guideline c. first line manager's tool d. middle management guideline

ANSWER: A POINTS: 0 REF:

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3. Operative goals designate the ends sought by an organization through the efficient utilization of its operating procedures. They represent the actual goals achieved rather than those that are stated within a mission statement. _____ are a reflection of the goals for growth and output volume. a. Market standing goals b. Productivity goals c. Resource allocation goals d. Overall performance goals ANSWER: D POINTS: 0 / REF:

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4. The ZZY Corporation engages in marketing its products to all consumers at a price that is several dollars per item less than any of its competitors. This type of implemented strategy is best identified as a ________ strategy. a. differentiation b. low-cost leadership c. focused differentiation d. focused low-cost leadership ANSWER: B POINTS: 0 REF:

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5. In the integrated effectiveness model, a/an _______ emphasis blends the values of an internal focus with a flexible structure. a. open systems b. internal process c. rational goal d. human relations ANSWER: D POINTS: 0 / REF:

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6. Alex is a top-level manager for the CCP Corporation. Her organization utilizes one of the contingency approaches for measuring the achievement of its desired levels of output. Which of the following would best identify the type of approach implemented by the CCP Corporation? a. Goal approach b. Internal process approach c. Resource-based approach d. Rational goal approach ANSWER: A POINTS: 0 REF:

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CHAPTER 3: Fundamentals of Organizational Structure

True/False Indicate whether the statement is true or false. 1. One disadvantage of the matrix structure is that some employees can experience frustration and confusion over having dual authority. ANSWER: T POINTS: 0

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2. In an organization operating with a horizontal structure, the use of individuals rather than teams forms the basis of organizational design and performance. ANSWER: F POINTS: 0 REF:

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3. A modular structure is one that is surrounded by a network of outside specialists. An organization employing this type of structure typically engages in outsourcing. ANSWER: T POINTS: 0 REF:

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4. Vertical control is associated with learning, innovation, and flexibility within an organization. ANSWER: F POINTS: 0 REF:

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Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which of the following does not reflect an expected procedure or outcome of a vertical organization that is designed for efficiency? a. Strict rules b. Centralized decision making c. Few if any task forces d. Face-to-face communication system ANSWER: D POINTS: 0 / REF:

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2. Which one of the following departmental groupings would be most likely to have employees organized around the products that are offered by the company and to have those employees under the guidance of a single executive? a. Modular b. Divisional c. Multifocused d. Horizontal ANSWER: B POINTS: 0 REF:

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3. Of the following, which would be considered a weakness to an organization with a divisional structure? a. Lack of technical specialization b. Adaptability to rapid changes c. Adaptability to consumer differences d. Elimination of economies of scale in functional departments e. Both a and d ANSWER: E POINTS: 0 REF:

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4. The Better Than Perfect Company closely monitors the distinct needs and tastes of each of its consumers. This organization has specialized units to markets its products throughout various regions in Canada. These units enable the company to adapt products to the differing regions in order to better satisfy the customers' wishes. Which structural grouping is most probably utilized by the Better Than Perfect organization? a. Matrix b. Functional c. Geographical d. Divisional ANSWER: C POINTS: 0 / REF:

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5. A _____ structure is one that is multifocused on both product and function or product and geography. a. divisional b. matrix c. functional d. geographic ANSWER: B POINTS: 0 REF:

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6. Which of the following items is not a condition that must be present in order to better ensure that the use of a matrix structure is the correct choice to make? a. No interdependence or coordination exists between departments b. Scarce resources must be shared across product lines c. Pressure exists for in-depth technical knowledge d. Balance of power exists between the functional and the product side ANSWER: A POINTS: 0 REF:

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CHAPTER 4: The External Environment

True/False Indicate whether the statement is true or false. 1. An organization's task environment is inclusive of all sectors that have a direct impact upon it and with which it directly interacts. ANSWER: T POINTS: 0 REF:

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2. International changes and events currently have little if any effect on North American companies. However, it is anticipated that this will change significantly in the future. ANSWER: F POINTS: 0 REF:

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3. Environmental cooptation pertains to those sectors that an organization deals with on a regular, day-to-day basis. ANSWER: F

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4. The music industry, e-commerce businesses, and toy manufacturers are examples of simple, stable organizations that have low uncertainty. ANSWER: F POINTS: 0 REF:

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Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The purpose of _______ is to absorb uncertainty from the organization's environment. a. boundary spanning roles b. interlocking directorates c. indirect interlocks d. buffering roles ANSWER: D POINTS: 0 / REF:

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2. Paul Lawrence and Jay Lorsch conducted an examination of organizations. Their research findings indicated that organizations perform more optimally when the levels of _______ match the level of _______. a. differentiation, uncertainty b. integration, certainty c. differentiation and integration, certainty d. integration and differentiation, uncertainty ANSWER: D POINTS: 0 / REF:

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3. In a/an _______ organization system, tasks are rigidly defined and broken down into specialized separate parts. a. mechanistic b. organic c. stable-unstable dimension d. resource dependent ANSWER: A POINTS: 0 REF:

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4. Which one of the following items would not be considered a methodology for controlling an organization's environmental domain? a. Change the domain b. Join trade associations c. Establish joint ventures d. Influence governmental regulations ANSWER: C POINTS: 0 / REF:

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5. _______ has a primary concern or focus on the exchange of information to detect and bring into the organization information about changes in the environment and to send information back into the environment that puts the organization in a favourable light.

a. b. c. d.

Cooptation Buffering Boundary spanning An interlocking directorate

ANSWER: C POINTS: 0 / REF:

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6. The ______ is concerned with the dissimilarity of external elements relevant to an organization's operations. a. interlocking directorate b. stable-unstable dimension c. indirect interlock d. simple-complex dimension ANSWER: D POINTS: 0 / REF:

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