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Chapter 11 - Organizational Structure
49. (p. 3030 The need for global coordination and innovation ________ to get the right mix of
local initiative, information flow, leadership and corporate culture.
50. (p. 330) Today, global means:
51. (p. 331) The result of _______ is coordination, communication and decision-making
functions being accomplished quickly and easily, making traditional organizational structures
look slow, inefficient and noncompetitive.
52. (p. 331) _______ means removing human minds and hands from an organization's most
routine tasks and replacing them with computers and networks.
53. (p. 332) Major efforts to improve traditional organizational structures seek to _______ and
_______. One key emphasis in large organizations is to redefine the role of corporate
headquarters.
54. (p. 332) Increasingly, globally engaged, multi-business companies are changing the role of
55. (p. 332) _______ is an important structural decision and resultant separate activities need to
be coordinated and integrated back together as a whole so the business functions effectively.
56. (p. 332) _____ has led brand marketers to realize they need to take a multidomestic approach
to be more responsive to local preferences.
57. (p. 334) _____ is redesigning an organizational structure with the intent of emphasizing and
enabling activities most critical to the firm's strategy to function at maximum effectiveness.
58. (p. 335) ________ was popularized by Hammer and Champy and is one of the more popular
methods by which organizations worldwide have been undergoing restructuring efforts to
remain competitive in the twenty-first century.
59. (p. 335) _______ is intended to place the decision-making authority that is more relevant to
the customer closer to the customer, in order to make the firm more responsive to the
customer's needs.
60. (p. 336) ______ is eliminating the number of employees, particularly middle management, in
a company.
61. (p. 337) One outcome of downsizing is increased _______ at operating levels of the
company. This is allowing work groups or teams to supervise and administer their work
without a direct supervisor exercising the supervisory role.
62. (p. 338) Corporations today are increasingly seeing their structure become an elaborate
network of external and internal relationships. This is known as:
63. (p. 338) _______ is defined as a temporary network of independent companies linked
primarily by information technology to share skills, access to markets and costs.
64. (p. 338) A(n) ________ is one that identifies a set of business capabilities central to high-
profitability operations and then builds a virtual organization around those capabilities.
65. (p. 338) _________ is simply obtaining work previously done by employees inside the
companies from sources outside the company.
66. (p. 339) A(n) _______ provides products or services using different, self-contained
specialists or companies brought together to contribute their primary or support activity to
result in a successful outcome.
67. (p. 339) _______ is the most rapidly growing segment of the outsourcing services industry
worldwide.
68. (p. 339) ______ is having an outside company manage numerous routine business
management activities usually done by employees of the company.
69. (p. 341) Outsourcing has many potential advantages. Which of the following is NOT a
potential advantage of outsourcing as a means to create an agile, virtual organization?
70. (p. 343) _______ are arrangements between two or more companies in which they both
contribute capabilities, resources or expertise to a joint undertaking, usually with an identity
of its own, with each firm giving up overall control in return for the potential to participate in
and benefit from the relationship.
71. (p. 343) Strategic alliances have several advantages for firms seeking agile, responsive
organizational structures. Which of the following is NOT an advantage of such an
arrangement?
72. (p. 345) Management icon Jack Welch coined the term _________ to characterize his vision
of what he wanted GE to become.
73. (p. 345) A _________ is an organizational structure that allows people to interface with
others throughout the organization without need to wait for a hierarchy to regulate that
interface across functional, business and geographic boundaries.
74. (p. 345) ________ exist between different departments or functions in a firm.
75. (p. 345) _______ exist between operations and management and levels of management.
76. (p. 345) _______ exist between different physical locations, countries or regions of the world
and between cultures.
77. (p. 346) ______ exist between a company and its customers, suppliers, partners, regulators
and competitors.
78. (p. 346) _______ are truly Internet-driven organizations designed to deliver speedy,
customized, service-enhanced products to savvy customers from an integrated, boundary less
organization, pulling together abundant, world-class resources digitally.
79. (p. 349) Subramanian Rangan calls the shift characterizing the growing importance of
organizational structures that enable global companies the chance to build competitive
advantage:
80. (p. 348) ______ is an organization structured around the idea of sharing knowledge, seeking
knowledge and creating opportunities to create new knowledge.
81. (p. 349) The ________ is an organization structure most notable for its lack of structure
wherein knowledge and getting it to the right place quickly is the key reason for organization.
Chapter 11 - Organizational Structure
Essay Questions
82. Describe a simple organizational structure. What are the demands on an owner-manager in
this structure?
Learning Objective: 1
83. What is a functional organization?
Learning Objective: 1
84. What are its advantages of a functional organizational structure over a simple
organizational structure?
Learning Objective: 1
85. What are the benefits and disadvantages of a divisional structure?
Learning Objective: 1
86. What is a strategic business unit?
87. How is a strategic business unit structure different from a holding company structure?
Learning Objective: 1
88. What is the matrix organizational structure?
Learning Objective: 1
89. What needs arise leading to the use of the product-team structure?
Learning Objective: 2
90. Describe globalization as a trend shaping the structuring of businesses today.
Learning Objective: 3
91. How does the Internet influence structural trends today?
92. How does speed influence structural trends today? Describe digitization.
Learning Objective: 3
93. What challenges does corporate management face in multibusiness and multinational
companies?
Learning Objective: 3
94. How can a firm balance the demands for control/differentiation in the corporate level of
management with the need for coordination/integration.
Learning Objective: 3
95. What is restructuring? How is used to emphasize and support strategically critical
activities?
Learning Objective: 3
96. What is business process reengineering? How is it used today?
97. Describe and evaluate the concept of self-management.
Learning Objective: 5
98. What is a virtual organization?
Learning Objective: 4
99. How does outsourcing create a modular organization?
Learning Objective: 4
100. What are strategic alliances? What are their advantages and disadvantages?
