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Chapter 8--The Organizational Context
Student: ___________________________________________________________________________
1. Which of the following was an important aspect of helping the FBI implement strategic organizational
change?
A. 360 degree performance feedback
B. Modified balanced scorecard
C. Employee satisfaction survey
D. All of these choices
2. Which of the following is a true statement about the way strategic change was managed at the FBI?
A. The change addressed the fact that the FBI had too many counterintelligence agents
B. The FBI was forced to adopt the Strategic Management System of the CIA
C. The change involved taking a more proactive approach to crime prevention
D. All of these choices
5. An organization's key governing rule is "The only rule is there are no rules." Which of the following
organization forms would be consistent with this approach to organizational structure?
A. Bureaucratic approach
B. Behaviorist approach
C. Clan approach
D. Transactional approach
6. Under what conditions is the clan approach most appropriate?
A. Large, complex organizations
B. Measureable tasks
C. Price-sensitive industries
D. Uncertain conditions
7. Which of the following most accurately characterizes the relationship between degree of centralization and
organizational control mechanisms?
A. Centralized decision making systems are typical to clan environments.
B. Decentralized decision making systems are only found in bureaucracies but either centralized or
decentralized systems are found in clans.
C. Centralized decision making systems are only found in clans but either centralized or decentralized systems
are found in bureaucracies.
D. Clans tend to be decentralized in decision making and bureaucracies tend to be centralized but either
structure can exist with either control mode.
9. Which of the following is not an organizational design decision made by top managers of a firm?
A. Division of labor
B. Formal structure
C. Coordinating mechanisms
D. Decision rights
10. A manager in Starbucks corporate office must determine who has the final authority over choosing the
materials for the marketing campaign. Which of the following aspects of organizational design does this refer
to?
A. Division of labor
B. Formal structure
C. Coordinating mechanisms
D. Decision rights
11. The senior management in a major US IT firm decided to offshore many of the computer programming
aspects of the business to India to save revenue on labor costs. Which of the following aspects of organizational
design has the management made a decision about?
A. Division of labor
B. Organizational boundaries
C. Political structure
D. Decision rights
12. Which of the following determines the legitimate basis of authority in a firm?
A. Rank and position
B. Expertise
C. Charisma
D. Social status
13. In which of the following life-cycles of a business is cost management most important?
A. Start up
B. Growth
C. Decline
D. Equally important in all stages
14. In which of the following life-cycles of a business is access to capital most important?
A. Start up
B. Growth
C. Decline
D. Equally important in all stages
16. What are firms called that are efficient in their current strategic operations while they prepare for changes in
the horizon?
A. Clan
B. Ambidextrous
C. Improvised
D. Erudite
17. Which of the following best describes a flaw of the business process reengineering approaches that were
popular in the 1990s?
A. Lack of focus on the customer
B. Failed to create efficient processes
C. Created greater costs for organizations
D. Did not recognize informal aspects of organizations
18. Which of the following represents a legacy of the business process reengineering movement?
A. More stable organizational structures
B. Focus on internal processes and procedures
C. More customer-centric organization
D. Reduced collaboration in teams
19. Southwest airlines' culture is a key part of the firm's competitive advantage. Southwest encourages
employees to have fun at work and to go above and beyond in order to help customers have a positive
experience. Which aspect of organization design is Southwest focusing on to enhance the customer experience?
A. Coordination
B. Cooperation
C. Capability development
D. Connection
20. Starbucks provides its partners who work in coffee shops outstanding training and development to ensure all
have superior product knowledge. This outstanding knowledge of the product enables Starbucks' partners to
better serve customer needs by recommending products that customers might enjoy. Which aspect of
organization design is Starbucks focusing on to enhance the customer experience?
A. Coordination
B. Cooperation
C. Capability development
D. Connection
21. After the 911 terror attacks, the FBI committed its organization to do the following:
A. Hunt down bin Laden
B. Flipped their priorities to fight terrorists first, then crime
C. Hired more agents to fight terrorists
D. Increased intelligence overseas
22. The FBI made several changes to its organization:
A. Changed headquarters, offices, and personnel
B. Changed organized crime, terrorism
C. Changed its resources, structure, and purpose
D. Changed leadership, personnel, focus
23. Many fast food retailers maintain this system of controls to ensure quality:
A. Good food, fast times, happy people
B. Good food, technology, happy people
C. Low wages, minority labor force, location
D. Tight controls
26. The Clan approach contrasts the bureaucratic approach because it functions:
A. With job titles, job descriptions, specific level of managers
B. Low morale, job turnover, poor training
C. High morale, strong supervision, autocratic
D. Self-supervising, teams complete tasks
27. When employees believe that their values are aligned with the firm:
A. Have an internal motivation, behave appropriately, follow rules
B. Expect raises for good work, are not late to work, stay late
C. Expect layoffs during recessions, have doubts about their future
D. Use the clan method, use performance evaluations
28. Define a centralized organization as being:
A. Informal structure, little control of behavior, bottom-up decision making
B. Formal structure, strict employee control, top-down authority
C. Formal structure, low employee control, no authority
D. Informal structure, strict control of behavior, bottom-up decision making.
31. When an engineer is involved with project budgeting, and the transition from research to manufacturing,
this process is called:
A. Horizontal specialization
B. Vertical specialization
C. Team specialization
D. Division of labor
37. Describe the role that organizations play in helping a firm achieve its strategic objectives.
38. Compare the elements of organizational structure and organizational strategy as the concepts work with
each other.
39. Articulate the decisions necessary for a firm to create an organizational structure that is aligned with a firm's
strategic objectives.
40. Discuss the processes being used by companies to redefine their organizational structure to meet customer
needs and improve organizational objectives.
Chapter 8--The Organizational Context Key
1. Which of the following was an important aspect of helping the FBI implement strategic organizational
change?
A. 360 degree performance feedback
B. Modified balanced scorecard
C. Employee satisfaction survey
D. All of these choices
2. Which of the following is a true statement about the way strategic change was managed at the FBI?
A. The change addressed the fact that the FBI had too many counterintelligence agents
B. The FBI was forced to adopt the Strategic Management System of the CIA
C. The change involved taking a more proactive approach to crime prevention
D. All of these choices
5. An organization's key governing rule is "The only rule is there are no rules." Which of the following
organization forms would be consistent with this approach to organizational structure?
A. Bureaucratic approach
B. Behaviorist approach
C. Clan approach
D. Transactional approach
6. Under what conditions is the clan approach most appropriate?
A. Large, complex organizations
B. Measureable tasks
C. Price-sensitive industries
D. Uncertain conditions
7. Which of the following most accurately characterizes the relationship between degree of centralization and
organizational control mechanisms?
A. Centralized decision making systems are typical to clan environments.
B. Decentralized decision making systems are only found in bureaucracies but either centralized or
decentralized systems are found in clans.
C. Centralized decision making systems are only found in clans but either centralized or decentralized systems
are found in bureaucracies.
D. Clans tend to be decentralized in decision making and bureaucracies tend to be centralized but either
structure can exist with either control mode.
9. Which of the following is not an organizational design decision made by top managers of a firm?
A. Division of labor
B. Formal structure
C. Coordinating mechanisms
D. Decision rights
10. A manager in Starbucks corporate office must determine who has the final authority over choosing the
materials for the marketing campaign. Which of the following aspects of organizational design does this refer
to?
A. Division of labor
B. Formal structure
C. Coordinating mechanisms
D. Decision rights
11. The senior management in a major US IT firm decided to offshore many of the computer programming
aspects of the business to India to save revenue on labor costs. Which of the following aspects of organizational
design has the management made a decision about?
A. Division of labor
B. Organizational boundaries
C. Political structure
D. Decision rights
12. Which of the following determines the legitimate basis of authority in a firm?
A. Rank and position
B. Expertise
C. Charisma
D. Social status
13. In which of the following life-cycles of a business is cost management most important?
A. Start up
B. Growth
C. Decline
D. Equally important in all stages
14. In which of the following life-cycles of a business is access to capital most important?
A. Start up
B. Growth
C. Decline
D. Equally important in all stages
16. What are firms called that are efficient in their current strategic operations while they prepare for changes in
the horizon?
A. Clan
B. Ambidextrous
C. Improvised
D. Erudite
17. Which of the following best describes a flaw of the business process reengineering approaches that were
popular in the 1990s?
A. Lack of focus on the customer
B. Failed to create efficient processes
C. Created greater costs for organizations
D. Did not recognize informal aspects of organizations
18. Which of the following represents a legacy of the business process reengineering movement?
A. More stable organizational structures
B. Focus on internal processes and procedures
C. More customer-centric organization
D. Reduced collaboration in teams
19. Southwest airlines' culture is a key part of the firm's competitive advantage. Southwest encourages
employees to have fun at work and to go above and beyond in order to help customers have a positive
experience. Which aspect of organization design is Southwest focusing on to enhance the customer experience?
A. Coordination
B. Cooperation
C. Capability development
D. Connection
20. Starbucks provides its partners who work in coffee shops outstanding training and development to ensure all
have superior product knowledge. This outstanding knowledge of the product enables Starbucks' partners to
better serve customer needs by recommending products that customers might enjoy. Which aspect of
organization design is Starbucks focusing on to enhance the customer experience?
A. Coordination
B. Cooperation
C. Capability development
D. Connection
21. After the 911 terror attacks, the FBI committed its organization to do the following:
A. Hunt down bin Laden
B. Flipped their priorities to fight terrorists first, then crime
C. Hired more agents to fight terrorists
D. Increased intelligence overseas
22. The FBI made several changes to its organization:
A. Changed headquarters, offices, and personnel
B. Changed organized crime, terrorism
C. Changed its resources, structure, and purpose
D. Changed leadership, personnel, focus
23. Many fast food retailers maintain this system of controls to ensure quality:
A. Good food, fast times, happy people
B. Good food, technology, happy people
C. Low wages, minority labor force, location
D. Tight controls
26. The Clan approach contrasts the bureaucratic approach because it functions:
A. With job titles, job descriptions, specific level of managers
B. Low morale, job turnover, poor training
C. High morale, strong supervision, autocratic
D. Self-supervising, teams complete tasks
27. When employees believe that their values are aligned with the firm:
A. Have an internal motivation, behave appropriately, follow rules
B. Expect raises for good work, are not late to work, stay late
C. Expect layoffs during recessions, have doubts about their future
D. Use the clan method, use performance evaluations
28. Define a centralized organization as being:
A. Informal structure, little control of behavior, bottom-up decision making
B. Formal structure, strict employee control, top-down authority
C. Formal structure, low employee control, no authority
D. Informal structure, strict control of behavior, bottom-up decision making.
31. When an engineer is involved with project budgeting, and the transition from research to manufacturing,
this process is called:
A. Horizontal specialization
B. Vertical specialization
C. Team specialization
D. Division of labor
37. Describe the role that organizations play in helping a firm achieve its strategic objectives.
Organizations are the primary means that strategies are implemented, evaluated, and changed. An organization
is always evaluating its performance and it should change its structure according to its organizational
perspective. Organizational culture, structure, and measurement are three elements managers should use to
determine the efficiency of the organization's opportunity to meet its strategic goals.
38. Compare the elements of organizational structure and organizational strategy as the concepts work with
each other.
Organization structure follows organizational strategy in the organization. If the strategy is to pursue cost
leadership, then the structure will emphasize efficiency, cost reduction, and internal alignment. If the company
pursues differentiation strategies, then it will make structure decisions that cultivate innovation, creativity,
flexibility, and speed.
39. Articulate the decisions necessary for a firm to create an organizational structure that is aligned with a firm's
strategic objectives.
There are seven concepts used in aligning a structure that helps firm keep its competitive advantage: division of
labor, coordinating mechanisms, decision rights, boundaries, informal structure, political structure, and basis of
authority.
40. Discuss the processes being used by companies to redefine their organizational structure to meet customer
needs and improve organizational objectives.
Many companies are using Business Process Reengineering (BPR) to drive efficiency and meet customer needs.
There are four activities used to affect more customer-centric design: coordination, cooperation, capability
development, and connection.
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"O.K., doctor," returned Franklen. "And if you do, just drop 'em a shot
or something to pacify 'em until I get back and can take care of 'em
again."
They parted on a laugh. And once outside of the doctor's door, Jim
Franklen was met by an official messenger.
That was only the beginning. Just the start of a long series of similar
events that came crowding in on one another so fast that it made
one's head spin. Five years passed in this same mad whirl. Five
years of the same crazy pattern.
And then the Central Power, which was now calling itself the
European Power, faced the United States of The Americas across the
Atlantic Ocean. From Ellsmere Island to Cape Horn lay the United
States of The Americas, and from Spitzbergen to the Cape of Good
Hope lay the European Power, all and both combined.
And as before, Jim Franklen, now an older but still struggling
Franklen, was still working on the same question; and Thomas
Winter, also older and more resigned, urged Franklen on.
"Hindsight," said Franklen sourly, "is infinitely superior to foresight, or
at least it is better accomplished."
Winter nodded. "This is what we might have expected," he said.
"Years and years ago when Hohmann started this last war. Now we're
all in a position where strife might well break out at any moment. And
the question is whether to break out in open strife at once, or wait it
out and hope for the best. We can no longer move leisurely.
Hohmann has seen to it that for every advance he has made, we've
made a greater one. But now he is fresh out of available land to
spread out across, and he's looking at us. We've been dragged and
dragged by his indirectness into this situation, where the United
States as it was is no longer just we folks, but encompasses a myriad
of peoples, types, and governmental ideas. True, Washington is still
the seat of government, but that makes it seem as though we were to
blame for our own expansion."
"I may be able to help," said Franklen at last. "I think I've got the
answer, finally."
He said no more about it, but he was gone, somewhere for three
months, after which he returned long enough to pick up Dr. Shield
and fly with him to Europe. He gained audience with Edvard
Hohmann within a few hours.
"My American friend," exclaimed Hohmann, taking Franklen's hand.
"And this?"
"This is Dr. Shield," said Jim. "He's been instrumental in tracking
down some of the many plagues that have hit the world."
"Perhaps he can tell us where so many different illnesses come
from," said Hohmann, interestedly. "A kind Providence, that offers
both myself and your government the chance, to become great—it is
kind, and I say right that we have prospered—seldom seems in
existence at the proper time."
"Sometimes illnesses emerge from the common welter of human
frailties only because they have been eclipsed by more common
ailments," said Shield. "There is one other way in which an illness can
suddenly break out. Mutations. If you recall, the photographic industry
nearly went out of business when atomic power came in, because
there were radioactive atoms everywhere—even in the emulsions
and the films themselves. That has been largely abated, but only by
special methods. The world, right now, is bathed in many many more
kinds of radiation than ever before. Where once only alpha particles
were, now are protons and neutrons and both positive and negative
electrons, and gamma from here to there in wave length. Illness
comes from bugs, Commissario Hohmann, and bugs as well as
humans can evolve. The possibilities are limitless, it requires only a
diligent search—"
"Diligent search?" asked Hohmann. "You sound as though you
believed that someone might have been seeking such illnesses."
"Only academically, perhaps, just as we are," replied Shield. "Just to
know what possible mutations might take place, and perhaps give us
a bit of warning, we have been operating a radiation-biological
laboratory."
"Indeed?" said Hohmann.
"Oh yes. And we've come up with some of the most peculiar cultures.
Pure laws of chance, because most mutants die. We've got a violent
one that affects the calcium exchange in the body—your bones, you
know, are in a constant state of equilibrium, the matter changes, new
comes in to replace old going out—so that only the outgoing side is
working. The bones jellify. We've licked that one by antibodies and
partial immunities. But the more recent ones have rather peculiar
effects. One of them strikes the nerves in the semicircular canals of
the ear. During the two months of its run, the patient cannot stand, or
cannot retain any balance at all. He cannot even lift his hands as he
desires, because he ... well, he might think he was standing on his
head, but he can't even accept a delusion as to his position, for all
position-sense is gone, completely. After two months, the average
body recovers, and the patient is well again. We've feared that, and
we've learned how to prevent it. That's a good thing, too, for it strikes
within a few minutes after exposure to any carrier."
"A rather terrible possibility," smiled Hohmann. "I've always been
proud of my sense of balance." He laughed nervously and stood upon
one foot for a few seconds.
"We were thinking that it might be well to combine our laboratories,"
said Franklen. "We can pool our findings and collectively advance so
that this wave of mutated bugs can be prevented."
"That is an excellent idea," said Hohmann—
At which point he fell flat on his face!
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