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Chapter 11 Organizational Design: Structure, Culture, and Control
Answer Key
Multiple Choice Questions
1.
Which of the following terms or phrases best characterizes Zappos' organizational
structure?
2.
Organizational design is
3.
What was one of the reasons for Jerry Yang's failure at Yahoo?
4.
Why does strategy implementation often require changes within an organization?
5.
Which of the following statements is true of strategy in an organization?
6.
To maintain its core competency of providing a superior customer experience in the face
of explosive growth, Zappos split the organization into 10 standalone units. Which of the
following does this scenario best illustrate?
7.
What most likely happens when a firm optimizes its organizational structure to its current
situation?
8.
A firm's _____ determines how the work efforts of individuals and teams are orchestrated
and how resources are distributed.
9.
Which of the following real-world scenarios best exemplifies formalization?
10.
Which of the following is an unintended side effect of a high degree of specialization in an
organization?
11.
_____ describes the degree to which a task is divided into separate jobs.
12.
McDonald's uses detailed standard operating procedures throughout the world to ensure
product quality. This implies that McDonald's has a high degree of
13.
A high degree of formalization in an organization is most likely to
14.
W. L. Gore & Associates is the inventor of path-breaking new products such as breathable
GORE-TEX fabrics, Glide dental floss, and Elixir guitar strings. Which of the following
would be most likely to hinder its intention of fostering employee satisfaction, retention,
and creativity?
15.
W. L. Gore & Associates is organized in such a way that it has no formal job titles, job
descriptions, or chains of command. This implies that it has
16.
Which of the following is true of W. L. Gore & Associates, which has a lattice
organizational form?
17.
Which of the following statements about W. L. Gore & Associates best supports the fact
that it is organized in an informal and decentralized manner?
18.
How does W. L. Gore exemplify founder imprinting?
19.
_____ refers to the degree to which decision making is concentrated at the top of the
organization.
20.
Which of the following did management at Zappos do to reduce the level of formalization
in their organization?
21.
Black Mouse Inc., a web development firm, is headed by Rob Dennis, the CEO. Each
functional department of the company—marketing, finance, and HR—has a president who
reports to the CEO directly. Each department has various managers who manage teams.
The managers report to the presidents, and the team leads report to the managers. Finally,
the employees at the lowest level report to their team leads. It is rare for a lower-level
employee to interact with the CEO of the company. In this scenario, Black Mouse Inc. can
be said to have a(n)
22.
Grey Designs Inc., a graphic design firm, has offices in New York, Texas, California, New
Mexico, and New Jersey. Each of these offices is headed by a president who reports
directly to Charles Grey, the CEO. The heads of the centralized HR, Finance, and
Marketing teams report to Charles Grey as well. Managers in the various offices also
report to the CEO directly. Based on this information, which of the following statements is
most likely to be true?
23.
Flight Stream Inc., a toy manufacturing company, encourages its employees to enjoy their
work by taking on additional responsibilities or switching jobs with each other. It allows its
employees immense flexibility in charting their own career path within the organization.
Chris has worked at Flight Stream for eight years, but has never had a boss or supervised
an employee. Which of the following is most likely true in this scenario?
24.
_____ organizations have a low degree of specialization and formalization as well as a flat
organizational structure.
25.
Fast Call Inc. is a pharmaceutical company that has many breakthroughs in medicine to its
credit. Unlike many other pharmaceutical companies, Fast Call has a relaxed work
environment where employees are free to discuss projects with each other. Employees are
encouraged to choose the projects that interest them; communication between team
members and their supervisors is open and easy. Because of the company's work culture,
its employees feel motivated to work harder and display more entrepreneurial behaviors.
In this scenario, Fast Call Inc. is most likely an organization that is
26.
Since an organic structure helps a firm build core competencies in areas such as R&D and
marketing, this structure is employed by firms that
27.
If a firm pursues only a differentiation strategy, it is most likely a(n) _____ organization.
