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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.
3) As Power Corporation grew, it shied away from being an operator of the business it ended up owning.
4) A simple organizational structure may lead to problems such as unclear boundaries of authority and few career advancement options.
5) One disadvantage of a functional structure is that differences in functional orientation may impede organization coordination and communication.
6) To enhance integration and control of related product market activities, the functional structure minimizes centralization.
7) A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives.
9) The strategic business unit (SBU) and holding company structure are variants of the functional form of structure.
10) The strategic business unit (SBU) structure is also referred to as the conglomerate structure.
11) The matrix structure attempts to combine the advantages of the functional and product-oriented structure.
13) A major disadvantage of the matrix structure is that it duplicates the use of specialized personnel, equipment, and facilities.
14) A worldwide product division structure is used when global strategies require that each division be responsible for overall efficiency and performance.
15) The purpose of boundaryless forms of organizing is to facilitate the widespread sharing of knowledge and information across internal and external boundaries of the organization.
18) An advantage of the barrier-free form of organizing is that internal cooperation and shared objectives are not required for it to work.
19) Because the modular form of organizing involves outsourcing vital functions, modular firms often forfeit full strategic control.
20) Modular companies can achieve rapid growth because they don't require large investments in fixed assets.
21) Outsourcing relieves companies of the requirement to maintain skill levels needed to manufacture essential components.
23) The virtual type of organization is a network of independent companies linked together to share skills, costs, and access to one another's markets.
24) The virtual organization is characterized by participating firms which pursue a collective strategy that enables them to cope with environmental uncertainty through cooperative efforts.
26) When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a
27) Canadian conglomerate Power Corporation had its original corporate roots in THE
The Electricity Generating Industry
28) A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a
29) Generally speaking, discussions of the relationship between strategy and structure strongly imply that
Structure Follows Strategy
30) All of the following statements about simple organizational structures are true except:
Creativity and Individualism are Rare
33) At Sharp Corporation, work is divided into units that specialize in production, marketing, research and development, and other management tasks. This is an example of a
34) Which of the following is an advantage of a functional type of organizational structure?
Pooling of Specialists Enhances Coordination and control
35) Which of the following is a disadvantage of a functional type of organizational structure?
Differences in Functional Orientation May Impede Communication and coordination
37) Which of the following is an advantage of a divisional type of organizational structure?
An enhanced ability to respond quickly to changes in the external environment
38) All of the following are disadvantages of a divisional type of organizational structure except:
There is a seperation of strategic and operating control
40) All of the following are advantages of a strategic business unit (SBU) type of organizational structure except:
THE CORPORATE OFFICE IS MORE REMOVED FROM THE INDIVIDUAL DIVISIONS.
41) Important advantages of a holding company structure include
SAVINGS IN PERSONNEL AND OVERHEAD EXPENSES ASSOCIATED WITH A SMALL CORPORATE OFFICE.
42) Diversified Canadian conglomerate Weston has put its businesses into three primary SBUs, which are
FISHERIES, BAKERIES, AND RETAIL.
43) Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of what type of organizational structure?
44) Which of the following is considered to be an advantage of a matrix structure?
INCREASED RESPONSIVENESS TO THE MARKET.
45) If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is
46) If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is
WORLDWIDE PRODUCT DIVISION.
48) Which of the following boundaries exist between the functional areas of an organization?
50) Organizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been found to be
THE WAY TEAM MEMBERS TREAT EACH OTHER.
51) Which of the following is not a disadvantage of the barrier-free form of organization?
FEWER INTERNAL BARRIERS MEANS FEWER POLITICAL ISSUES TO DEAL WITH.
52) What type of organization is defined as "a central hub surrounded by networks of outside suppliers and specialists"?
56) The phrase that best defines a virtual organization is
A CONTINUALLY EVOLVING NETWORK OF INDEPENDENT COMPANIES.
57) Complete the following sentence: "Virtual organizations _______ whereas modular organizations________
GIVE UP PART OF THEIR STRATEGIC CONTROL, RETAIN FULL STRATEGIC CONTROL."
58) Which of the following is not a disadvantage of virtual structures?
DIFFICULTY IN INDIVIDUAL AND ORGANIZATIONAL KNOWLEDGE SHARING.
1) For firms competing in highly unstable and turbulent industries, "traditional" strategic controls are most appropriate.
2) Sales quotas, operating budgets, and production schedules are examples of "traditional" controls.
4) Enron, WorldCom, and other US companies have suffered from management abuses; Canada's public companies have not survived unscathed.
6) Continuous monitoring enhances an organization's ability to respond with speed and flexibility.
7) The US Congress introduced the Sarbanes-Oxley Act in 2002 to ensure better governance of public corporations. Similar provisions have NOT been put in place in Canada.
8) For young managers who see themselves as free agents, behavioral controls such as rewards and culture can be an effective way to enhance organizational loyalty.
9) Once a strong and healthy organizational culture has been established, it becomes self-sustaining.
12) Reward systems that reinforce an organization's core values and contribute to organizational cohesiveness are the least effective type. FALSE
15) In terms of corporate culture, Cirque du Soleil's focus is on customer service, not innovation.
16) Short-term objectives and action plans are types of boundaries that channel the efforts of employees toward goal accomplishment.
17) Unexpected events (such as wildcat strikes or new government regulations) have little effect on short-term objectives that need to remain fixed to be effective.
18) Action plans permit a degree of autonomy for managers who sometimes must modify activities to achieve the desired outcome.
19) In firms that follow related diversification strategies, reward and control systems rely on qualitative indicators since the organization needs to reward and reinforce behaviors that facilitate sharing and collaboration.
20) Product diversification by a company is a cheaper way to reduce shareholder risk than portfolio diversification by shareholders.
21) The risk of being acquired by hostile raiders is often referred to as the takeover constraint.
22) Auditors are appointed by the Securities and Exchange Commission to audit a company's financial statements.
24) Public companies are required by law to disclose information regarding executive compensation packages.
25) The Sarbanes-Oxley Act of 2002 requires that CEOs and CFOs of publicly-listed companies must reveal off-balance-sheet finances and vouch for the accuracy of information provided.
26) The Sarbanes-Oxley Act of 2002 does not apply to Canadian publicly listed companies operating in the US that are listed on US stock exchanges.
27) The "traditional" approach to strategic control is sequential. Which of the following is not one of the steps in the sequence?
ACTION PLANS ARE SUBMITTED BY LOWER LEVEL MANAGERS.
28) The primary drawback of "traditional" strategic control systems is that
THEY LACK THE FLEXIBILITY NEEDED TO ADJUST TO CHANGES IN THE ENVIRONMENT.
29) For business facing complex and turbulent business environments,
TRADITIONAL STRATEGIC CONTROLS ARE USUALLY INAPPROPRIATE.
30) McGill University's Prof. Mintzberg, writing about leaders and strategy, had observations which
CAST DOUBT ON THE VALUE OF RIGID PLANNING AND GOAL-SETTING PROCESSES.
32) Which of the following is not one of the characteristics of a contemporary control system?
IT CIRCUMVENTS THE NEED FOR FACE-TO-FACE MEETINGS AMONG SUPERVISORS, SUBORDINATES, AND PEERS.
33) In terms of building and strong and effective corporate culture, Canada's Cirque du Soleil was described as focusing on
34) Which of the following approaches to behavioral strategic control should be utilized least in an organization in which there is a great need for innovation and a high degree of autonomy?
35) Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by
DESIGNING EFFECTIVE REWARD SYSTEMS.
36) All of the following are examples of how organizational culture exerts behavioral control except:
CULTURE SETS EXPLICIT BOUNDARIES
37) In terms of providing short-term objectives and action plans, which Canadian company was mentioned by the text in Chapter 10 as having the vision of being a "national champion and Canada's most trusted company"?
38) Which of the following is not one of the functions of reward and incentive systems?
THEY REPRESENT A POOR MEANS OF INFLUENCING AN ORGANIZATION'S CULTURE.
39) All of the following are characteristics of effective reward and incentive systems except:
THE STRUCTURE IS FIXED TO ENSURE EMPLOYEES OF CONSISTENCY.
40) The causes of counterproductive behavior in organizations include
ALL OF THE ANSWERS ARE CORRECT.
41) Effective short-term objectives have all of the following priorities except
AN EMPHASIS ON "DO YOUR BEST" GOALS.
42) In firms with overall low-cost strategies, the culture should foster_______levels of interdependence and rewards should be based primarily on _______ measures of output.
43) In firms with differentiation strategies, the culture should foster ______ levels of interdependence and rewards should be based primarily on _______ measures of output.
44) In firms with related diversification strategies, the culture should foster ______ levels of interdependence and rewards should be based primarily on _________measures of output.
48) It is generally argued that the takeover constraint deters management from
ENGAGING IN OPPORTUNISTIC BEHAVIOR.
49) The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all of the following factors except
THE FAILURE OF U.S. AUDIT FIRMS TO FOLLOW INTERNATIONALLY ACCEPTED ACCOUNTING STANDARDS.
50) Canadian IT company Nortel was cited by the text as an example of "flawed corporate governance" because
ALL OF THE ANSWERS ARE CORRECT.
51) All of the following are types of information that a firm is required to disclose except
DETAILS OF NEW PRODUCTS UNDER DEVELOPMENT.
2) Setting a direction is the leadership activity that involves developing a strategic vision of what the organization could become.
3) Designing and organization is the leadership activity that involves building structures, teams, systems, and processes that facilitate the implementation of a leader's vision.
4) Leaders play an important role in sustaining an organization's culture, but they are powerless to change it.
5) Leaders are not expected to accept personal responsibility for ethical behavior in an organization because ethics is a matter of individual choice.
6) Systemic barriers to change refer to elements of an organization's design, structure, and reporting relationships that impede the flow of information.
7) Behavioral barrier to change occur because of conflicts between departments, conflicts arising from power relationships, and refusal to share information.
9) "Coercive power" is the power exercise by use of fear of punishment for errors of either omission or commission by employees.
10) In terms of the strategy of expansion, with over 2,400 outlets in Canada, Tim Hortons has much room for growth.
11) Emotional Intelligence (EI) is generally a better predictor of life success than Intelligence Quotient (IQ).
12) Empathy, one of the components of Emotional Intelligence (EI), refers to one's proficiency in managing relationships and building networks.
13) Organizational learning works best when an organization's leaders gather information and teach it to employees who are like their students.
15) A key function of the leaders in a learning organization is to generate an organization-wide commitment to the status quo.
16) Inspiring and motivating people with a mission or purpose is a necessary and sufficient condition for developing a learning organization.
17) To successfully empower employees to achieve organizational goals, leaders must perform the tasks of resource allocation and power brokering.
18) In the "top-down" approach to empowerment, leaders clarify the mission, delegate responsibility, and hold people accountable for results.
20) "Open book" management is a technique for gathering and disseminating internal information so that all employees can be involved in decision making and management.
22) Ethical behavior can be reinforced through the use of an appropriate reward and evaluation system.
23) An effective way to instill ethical behavior in an organization is to distribute rewards strictly on the basis of outcomes.
26) According to the text, effective leadership is like a three-legged stool consisting of all the following except
DEDICATION TO MAINTAINING THE STATUS QUO.
27) The leader's role in developing a strategic vision provides many benefits including
ALL OF THE ANSWERS ARE CORRECT.
28) Poor organizational design by leaders can result in all of the following except
TEAMS, SYSTEMS, AND ORGANIZATIONAL PROCESSES THAT FACILITATE IMPLEMENTATION.
29) In terms of nurturing a corporate culture, Canada's Cirque du Soleil was transformed by Guy Laliberte who
PUSHED HIMSELF AND HIS ARTISTS TO CONTINUOSLY EXPERIMENT.
31) Canadian icon Tim Hortons' future plans
INVOLVE EXPANDING ON THEIR 250 FRANCHISES THEY HAVE IN THE U.S.
32) Refusal to share information, conflicts over resources, conflicts between departments and divisions, and petty interpersonal differences are symptoms of which type of barrier to change?
33) Which of the following explains why organizations are prone to inertia and slow to change?
ALL OF THE ANSWERS ARE CORRECT
36) Coercive power IS
THE POWER EXERCISED BY USE OF FEAR OF PUNISHMENT FOR ERRORS OF OMISSION OR COMMISSION BY EMPLOYEES.
38) The three broad sets of capabilities that a leader should possess include all of the following except
40) Which of the following is not a characteristic of a successful learning organization?
THEY REGULARLY ENGAGE IN ACTIVITIES TO REINFORCE THE STATUS QUO.
41) Complete the following sentence: "Inspiring and motivating people with a mission or purpose is a __________________ for developing an organization that can learn and adapt."
NECESSARY BUT NOT A SUFFICIENT CONDITION
44) The empowerment perspective that involves trusting people to "do the right thing," take intelligent risks, and act with a sense of ownership is known as
THE BOTTOM-UP APPROACH.
45) An empowerment perspective that delegates responsibility, focuses on accountability, and relies on clearly specified rewards to motivate is known as
THE TOP-DOWN APPROACH.
47) Which of the following is not one of the three core activities in the "open book" management systems pioneered by Jack Stack?
INFORMATION ABOUT CUSTOMER EXPECTATIONS AND FEEDBACK IS DISTRIBUTED MONTHLY.
50) All of the following are guidelines an organization can use to promote the challenging of the status quo except
CREATING A RESULTS-BASED REWARD SYSTEM.
51) Companies that cultivate cultures of experimentation and curiosity make sure that ___________ is not, in essence, a bad thing.
52) Which of the following statements about ethics is false?
ETHICS IS NOT CONCERNED WITH WHETHER OR NOT AN ACT IS SOCIALLY DESIRABLE.
53) All of the following statements about ethical organizations are true except
THE POTENTIAL BENEFITS OF AN ETHICAL ORGANIZATION ARE FEW BUT DIRECT.
55) Proactive measures to prevent organizational ethics problems include all of the following except
INSTITUTING A REWARD SYSTEM WHICH CONSIDERS OUTCOMES AS A PRIMARY CRITERION.
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