Ch 11 Organizational Desgin, Structure, Culture and Control

Organizational design is

the process of creating, implementing, and modifying the structure of an organization

What most likely happens when a firm optimizes its organizational structure to its current situation?

It plants the seed of subsequent failure: the tightly coupled system can break apart when internal or external pressures occur

Jared works as a frontline employee for a nationwide retail store. He reports to a floor manager, who reports to a departmental manager, who reports to a regional supervisor, who reports to a vice president, who reports to the CEO. Which of the following best describes this retail store?

tall structure

Simple organizational structures often exhibit low levels of formalization and specialization. Which of the following is not a benefit of employing a simple organizational structure?

employing specialists that can develop deep knowledge/expertise in their field

A firm’s ________determines how the work efforts of individuals and teams are orchestrated and how resources are distributed.

structure

Los Pollos Hermanos is a nationwide fast-food chain. Decision power resides at the top of the organization. Each job is documented in minute detail. The firm has many levels of supervision, including vice presidents and regional managers. The firm’s headquarters provides detailed instructions to each of its franchisees so that they provide comparable quality and service across the board. Based on this scenario, which of the following is an accurate statement about Tony’s?

Los Pollos Hermanos has a high degree of specialization, formalization, and centralization and relies on a tall hierarchy.

The goal of a differentiation strategy is to create a competitive advantage by offering products or services

at a higher perceived value while controlling costs.

Which of the following features helps match a cost-leadership strategy to a functional structure?

focus on economies of scale

Elvira is the CEO of All Things Incorporated Her company employs a matrix structure, which is the combination of the ________and ________Blank structure.

Functional; M-form

When a firm diversifies into different product lines and geographies, a ________ structure is preferred.

Multidivisional

Which of the following provides an example of a common drawback of a functional strategy?

Jack had a difficult time communicating efficiently with the manager of another department.

A functional structure is recommended when a firm

has a low level of diversification

Two companies, Solara Home Systems and Zenith Appliances, are competing to lead the smart appliance market. Solara builds alliances with external design studios and research labs to co-develop new AI-driven technologies. Zenith, in contrast, relies solely on its in-house engineers and keeps its R&D results confidential to prevent imitation.

Which statement best distinguishes the two firms’ innovation philosophies?

Solara views innovation as a networked process where value can be created and captured across organizational boundaries, whereas Zenith sees innovation as an internal capability to be protected.

GM’s insistence on sticking to a bureaucratic culture combined with its M-form structure and its subsequent failure to adapt to changing customer preferences for more fuel-efficient cars, produce higher quality, and create innovative designs best exemplifies

core rigidity

Kenyatta’s main competitor is known for its strong organizational culture, which gives it a competitive advantage in a tight market. Kenyatta is eager to duplicate his competitor’s culture but is finding it difficult. Two reasons why are likely the successful competitor’s ________ and ________.

Causal ambiguity; social complexity

Which of the following types of groups is most susceptible to groupthink?

a cohesive group

During a quarterly retreat, Daniel’s team holds a discussion about the unwritten rules, shared assumptions, and everyday behaviors that shape how employees collaborate and make decisions within the company. The conversation centers on improving trust, communication, and accountability across departments.

The team is discussing its

Organizational culture

Output controls can sometimes discourage collaboration among different strategic business units. However, more and more work requires creativity and innovation, especially in highly developed economies. One way firms are grappling with this issue is by

Introducing results-only-work-environments to tap intrinsic motivations

Which of the following is true of the process of organizing for competitive advantage?

To maintain competitive advantage, companies need to restructure as they grow and the competitive environment changes.

Delos Incorporated is an apparel manufacturer. The management at Delos Incorporated prefers moderate control over the operations of the different departments such as R&D, design, marketing, and sales. It allocates a budget to each function at the beginning of each quarter. This is an example of implementing control through

Input controls.