Ch 10-11

Question 1

Brand Manager

Answer 1

The project manager in P&G’s version of the matrix structure

Question 2

Centralization

Answer 2

An organizational decision-making approach with most strategic and operating decisions made by managers at the top of the organization structure (at corporate headquarters)

Question 3

Corporate Restructuring

Answer 3

A change in the organization’s structure to improve efficiency and firm performance, including such activities as realigning divisions in the firm, reducing the amount of cash under the discretion of senior executives, and acquiring or divesting business units.

Question 4

Decentralization

Answer 4

An organizational decision-making approach with most strategic and operating decisions made by managers at the business unit level.

Question 5

Downsizing

Answer 5

A means of organizational restructuring that eliminates part or all of one or more hierarchical levels from the organization and pushes decision-making downward in the organization.

Question 6

Flat Organization

Answer 6

An organization characterized by relatively few hierarchical levels and a wide span of control.

Question 7

Functional Structure

Answer 7

A form of organizational structure whereby each subunit of the organization engages in firm-wide activities related to a particular function, such as marketing, HR, finance, or production.

Question 8

Geographic Divisional Structure

Answer 8

form of organizational structure in which jobs and activities are grouped on the basis of geographic location—for example, northeast region, Midwest region, and far west region.

Question 9

Horizontal Growth

Answer 9

An increase in the breadth of an organization’s structure

Question 10

Horizontal Structure

Answer 10

An organizational structure with fewer hierarchies designed to improve efficiency by reducing layers in the bureaucracy.

Question 11

Matrix Structure

Answer 11

A form of organizational structure that combines the functional and product divisional structures.

Question 12

Multidivisional Structure

Answer 12

A structural form with two or more divisions based on products (a product divisional structure) or geography (a geographic divisional structure); also called an M-form.

Question 13

Organizational Structure

Answer 13

The formal means by which work is coordinated in an organization.

Question 14

Product Divisional Structure

Answer 14

A form of organizational structure whereby the organization’s activities are divided into self-contained entities, each responsible for producing, distributing, and selling its own products.

Question 15

Profit Center

Answer 15

A well-defined organizational unit headed by a manager accountable for its revenues and expenditures.

Question 16

Simple Structure

Answer 16

An organizational form whereby each employee often performs multiple tasks, and the owner/ manager is involved in all aspects of the business.

Question 17

Span of Control

Answer 17

The number of employees reporting directly to a given manager.

Question 18

Tall Organization

Answer 18

An organization characterized by many hierarchical levels and a narrow span of control.

Question 19

Vertical Growth

Answer 19

An increase in the length of the organization’s hierarchical chain of command.

Question 20

Adaptive Culture:

Answer 20

A culture whereby members of an organization are willing and eager to embrace any change that is consistent with the core values.

Question 21

Creative Destruction

Answer 21

A process whereby managers consciously and constantly destroy the old by recombining its elements into new forms.

Question 22

Diversity

Answer 22

The extent to which individuals within an organization are different; what constitutes “different” is often debated, however.

Question 23

Emotional Intelligence

Answer 23

One’s collection of psychological attributes, such as motivation, empathy, self-awareness, and social skills.

Question 24

Inert cultures:

Answer 24

Conservative cultures that encourage maintenance of existing resources.

Question 25

Leadership Style

Answer 25

The consistent pattern of behavior that a leader exhibits in the process of governing and making decisions.

Question 26

Organizational Culture

Answer 26

The shared values and patterns of belief and behavior that are accepted and practiced by the members of a particular organization.

Question 27

Self-Reference Criterion

Answer 27

The unconscious reference to one’s own cultural values as a standard of judgment.

Question 28

Strategic Leadership

Answer 28

Creating the vision and mission for the firm, developing strategies, and empowering individuals throughout the organization to put those strategies into action.

Question 29

Strong Culture

Answer 29

A culture characterized by deeply rooted values and ways of thinking that regulate firm behavior.

Question 30

Transactional Leadership

Answer 30

The capacity to motivate followers by exchanging rewards for performance.

Question 31

Transformational Leadership

Answer 31

The capacity to motivate followers by inspiring involvement and participation in a mission.

Question 32

Vision

Answer 32

A view of the future when the mission is achieved in the present.

Question 33

Weak Culture

Answer 33

A culture that lacks values and ways of thinking that are widely accepted by members of the organization.

Question 34

5 Ways to Shape the culture

Answer 34

#1- Systematically pay attention to areas of the business believed to be linked to the success of the strategy.
#2- React strategically to critical incidents and organizational crises.
#3- Serve as a deliberate role model, teacher, or coach.
#4- Strategically allocate rewards and status.
#5- Modify the procedures through which an organization recruits, selects, promotes, and terminates employees.

Question 35

Executing Strategic Change

Answer 35

Step 1: Recognize the need for change.
Step 2: Create a shared vision of what the change will “look like.”
Step 3: Institutionalize the change

Question 36

Structural Forms (4 Options)

Answer 36

Functional Structure- organize by functions.
Product Divisional Structure- organize by products.
Geographic Divisional Structure- organize by geography.
Matrix Structure- combine functional and product divisional structures.

Question 37

Product and geographic divisional structures

Answer 37

are also called multidivisional or M-form structures.

Question 38

Considerations when selecting a structure

Answer 38

Level of corporate involvement in business unit operations
Compatibility of the structure with the corporate profile and the corporate strategy
Number of hierarchical levels in the organization
The extent to which the structure permits the appropriate grouping of activities
The extent to which the structure promotes effective coordination
The extent to which the structure allows for appropriate centralization or decentralization of authority