21)
A functional structure can be effective at eliminating short-term and narrow
thinking.
Answer: FALSE
Diff:
2 Page Ref: 221
Objective: 7.03 Explain why organizational structure is
so important in strategy implementation.
Learning
Outcome: Compare and contrast approaches
to organizational structure
22)
Most large companies have abandoned the functional structure in favor of
decentralization.
Answer: TRUE
Diff:
1 Page Ref: 222
Objective: 7.03 Explain why organizational structure is
so important in strategy implementation.
Learning
Outcome: Compare and contrast approaches
to organizational structure
23)
With a divisional structure, it is possible that competition between divisions
may become so intense that it leads to improved sharing of ideas and resources
for the common good of the firm.
Answer: FALSE
Diff:
2 Page Ref: 223
Objective: 7.03 Explain why organizational structure is
so important in strategy implementation.
Learning
Outcome: Compare and contrast approaches
to organizational structure
24)
With a divisional structure by customer, an organization can effectively cater
to the requirements of clearly defined customer groups.
Answer: TRUE
Diff:
2 Page Ref: 224
Objective: 7.03 Explain why organizational structure is
so important in strategy implementation.
Learning
Outcome: Compare and contrast approaches
to organizational structure
25)
Because activities are organized according to the way work is actually
performed, a divisional structure by process is similar to the matrix
structure.
Answer: FALSE
Diff:
2 Page Ref: 225
Objective: 7.03 Explain why organizational structure is
so important in strategy implementation.
Learning
Outcome: Compare and contrast approaches
to organizational structure
26)
The most complex of all organizational structures is a matrix structure.
Answer: TRUE
Diff:
1 Page Ref: 227
Objective: 7.03 Explain why organizational structure is
so important in strategy implementation.
Learning
Outcome: Compare and contrast approaches
to organizational structure
27)
With the matrix structure it is common for functional resources to be
duplicated.
Answer: FALSE
Diff:
2 Page Ref: 227
Objective: 7.03 Explain why organizational structure is
so important in strategy implementation.
Learning Outcome: Compare and contrast approaches to
organizational structure
28)
When developing an organizational chart, the title president should be reserved
fo the top executive of the firm.
Answer: FALSE
Diff:
2 Page Ref: 227
Objective: 7.03 Explain why organizational structure is
so important in strategy implementation.
Learning
Outcome: Compare and contrast approaches
to organizational structure
29)
When developing an organizational chart, it is not wise to recommend a dual
title for just one executive.
Answer: TRUE
Diff:
1 Page Ref: 227-228
Objective: 7.03 Explain why organizational structure is
so important in strategy implementation.
Learning
Outcome: Compare and contrast approaches
to organizational structure
30)
In developing an organizational chart, avoid having a particular person
reporting to more than one person above them in the chain of command.
Answer: TRUE
Diff:
2 Page Ref: 229
Objective: 7.03 Explain why organizational structure is
so important in strategy implementation.
Learning
Outcome: Compare and contrast approaches
to organizational structure
31)
Restructuring is also called rightsizing.
Answer: TRUE
Diff:
1 Page Ref: 230
Objective: 7.04 Compare and contrast restructuring and
reengineering.
Learning
Outcome: Compare and contrast approaches
to organizational structure
32)
In terms of number of employees, restructuring usually involves increasing the
size of the firm.
Answer: FALSE
Diff:
2 Page Ref: 230
Objective: 7.04 Compare and contrast restructuring and
reengineering.
Learning
Outcome: Compare and contrast approaches
to organizational structure
33)
Reengineering does not usually affect the organizational structure or chart,
nor does it imply job loss or employee layoffs.
Answer: TRUE
Diff:
3 Page Ref: 230
Objective: 7.04 Compare and contrast restructuring and
reengineering.
Learning
Outcome: Compare and contrast approaches
to organizational structure
34)
Six Sigma is generally equally successful in retail firms and manufacturing firms.
Answer: FALSE
Diff:
2 Page Ref: 230
Objective: 7.04 Compare and contrast restructuring and
reengineering.
Learning
Outcome: Compare and contrast approaches
to organizational structure
35)
The focus of restructuring is changing the way work is actually carried out.
Answer: FALSE
Diff:
3 Page Ref: 230
Objective: 7.04 Compare and contrast restructuring and
reengineering.
Learning Outcome: Compare and contrast approaches to
organizational structure
36)
Cornerstones of reengineering are decentralization, reciprocal interdependence
and information sharing.
Answer: TRUE
Diff:
2 Page Ref: 231
Objective: 7.04 Compare and contrast restructuring and
reengineering.
Learning
Outcome: Compare and contrast approaches
to organizational structure
37)
A dual bonus system based on both annual objectives and long-term objectives is
becoming common.
Answer: TRUE
Diff:
2 Page Ref: 232
Objective: 7.06 Explain how a firm can effectively link
performance and pay to strategies.
Learning
Outcome: Describe how organizational
performance is measured
38)
On average, CEOs at Japanese companies are paid more than CEOs at American or
European companies.
Answer: FALSE
Diff:
3 Page Ref: 231-232
AACSB: Multicultural and Diversity Understanding
Objective: 7.06 Explain how a firm can effectively link
performance and pay to strategies.
Learning
Outcome: Describe how organizational
performance is measured
39)
People's anxieties are raised with the thought of change because they fear
economic loss, inconvenience, uncertainty and a break in normal social
patterns.
Answer: TRUE
Diff:
2 Page Ref: 234
Objective: 7.08 Describe how to modify an organizational
culture to support new strategies.
Learning
Outcome: Explain how to manage
resistance to change
40)
Resistance to change can be considered the single greatest threat to successful
strategy implementation.
Answer: TRUE
Diff:
1 Page Ref: 234
Objective: 7.08 Describe how to modify an organizational
culture to support new strategies.
Learning
Outcome: Explain how to manage
resistance to change
41)
A rational change strategy means giving orders and enforcing those orders.
Answer: FALSE
Diff:
2 Page Ref: 234
Objective: 7.08 Describe how to modify an organizational
culture to support new strategies.
Learning
Outcome: Explain how to manage
resistance to change
42)
When the rational type change strategy is successful, strategy implementation
can be relatively easy.
Answer: TRUE
Diff:
1 Page Ref: 234
Objective: 7.08 Describe how to modify an organizational
culture to support new strategies.
Learning Outcome: Explain how to manage resistance to change
43)
The advantage of the educative change strategy is that implementation is quick
and relatively easy.
Answer: FALSE
Diff:
2 Page Ref: 234
Objective: 7.08 Describe how to modify an organizational
culture to support new strategies.
Learning
Outcome: Explain how to manage
resistance to change
44)
The rational change strategy is one that presents information to convince
people of the need for change.
Answer: FALSE
Diff:
2 Page Ref: 234
Objective: 7.08 Describe how to modify an organizational
culture to support new strategies.
Learning
Outcome: Explain how to manage
resistance to change
45)
Strategists should strive to create a work environment in which change is
recognized as necessary and beneficial so that individuals can more easily
adapt to change.
Answer: TRUE
Diff:
2 Page Ref: 235
Objective: 7.08 Describe how to modify an organizational
culture to support new strategies.
Learning
Outcome: Explain how to manage
resistance to change
46)
A force change strategy is plagued by low commitment and high resistance.
Answer: TRUE
Diff:
2 Page Ref: 234
AACSB: Communication Abilities
Objective: 7.08 Describe how to modify an organizational
culture to support new strategies.
Learning
Outcome: Explain how to manage
resistance to change
47)
Organizational change today should be viewed as a project or event rather than
as a continuous project.
Answer: FALSE
Diff:
2 Page Ref: 235
Objective: 7.08 Describe how to modify an organizational
culture to support new strategies.
Learning
Outcome: Explain how to manage
resistance to change
48)
Changing a strategy to fit an existing culture is not as effective as changing
a firm's culture to fit a new strategy.
Answer: TRUE
Diff:
2 Page Ref: 235
Objective: 7.08 Describe how to modify an organizational
culture to support new strategies.
Learning
Outcome: Explain how to manage
resistance to change
49)
Strategists should strive to preserve, emphasize, and build upon aspects of an
existing culture that are antagonistic to a proposed strategy.
Answer: FALSE
Diff:
3 Page Ref: 235
Objective: 7.08 Describe how to modify an organizational
culture to support new strategies.
Learning Outcome: Explain how to manage resistance to change
50)
Recruitment, promotion, and mentoring are ways to alter an organization's
culture.
Answer: TRUE
Diff:
3 Page Ref: 235
Objective: 7.08 Describe how to modify an organizational
culture to support new strategies.
Learning
Outcome: Explain how to manage
resistance to change
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