Exam 3 - CH11 Flashcards
(28 cards)
Since W. L. Gore’s core competency is innovation, a(n) ________ would most likely be detrimental to its efforts.
differentiation strategy
mechanistic structure
integration strategy
organic structure
mechanistic structure
In order to implement a cost-leadership strategy effectively, a ________ structure is preferred in a firm.
simple and M-form
simple and organic
functional and organic
functional and mechanistic
functional and mechanistic
One disadvantage of a functional structure is that it:
does not facilitate rich and extensive communication between members of the same department.
cannot be converted into an ambidextrous structure.
frequently lacks effective communication channels across departments.
does not allow the setting up of cross-functional teams.
frequently lacks effective communication channels across departments.
Inkwell is a pen manufacturing company based in Massachusetts. Inkwell’s main area of operation is Massachusetts, and it has a stronghold over the market. It employs a robust production system, which helps it sell pens at exceptionally low prices. In this scenario, which of the following strategies is Inkwell most likely using?
cost-leadership strategy
integration strategy
ambidextrous strategy
differentiation strategy
cost-leadership strategy
What is Organizational Design?
The process of creating, implementing, monitoring, and modifying the structure, processes, and procedures of an organization. Goal is to translate strategies into realized ones.
What are the key components of Organizational Design?
- Structure
- Culture
- Control
What is organizational inertia?
a firm’s resistance to
change the status quo
What causes organizational inertia?
shifts in the internal and/or external environment
What is the purpose of organizational structure?
- Defines how jobs and tasks are divided and integrated
- Delineates the reporting relationships up and down the hierarchy
- Defines formal communication channels
- Prescribes how individuals and teams coordinate their work efforts
What are the key building blocks of organizational structure?
- specialization
- formalization
- centralization
- hierarchy.
Specialization describes the degree to which:
a task is divided into separate jobs
Larger firms have ____ degree of specialization while smaller ventures have ____ degree of specialization
larger firms: higher
smaller firms: lower
What is formalization?
Captures the extent to which employee behavior is steered by explicit and codified rules and procedures. Often can be necessary for consistent and predictable results.
What is the risk of high formalization?
slow decision making, reduce innovation, and hinder customer service
Centralization refers to the degree to which:
decision making is concentrated at the top of the organization
What is the risk of centralization?
Slow response time and reduced customer satisfaction
Hierarchy determines:
formal, position-based reporting lines. Stipulates who reports to who and span of control.
What are the primary differences between mechanistic organizations and organic organizations?
Mechanistic:
- Higher degree of specialization
- More rigid and formal with rules
- Decision power centralized at top
- Tall hierarchy structures
Organic:
- Lower degree of specialization
- Relies on understanding of organizations core competencies and strategic intent
- Distributed decision making
- Flat hierarchy structures
A firm’s strategy and structure are
interdependent because they:
- Impact a firm’s performance
- Changes over time as the firm grow in size and complexity
Successful new ventures generally grow:
- First by increasing sales
- Then by obtaining larger geographic reach
- Finally by diversifying
What are the organizational structure types?
- Simple structure
- Functional structure
- Multidivisional structure
- Matrix structure
Which organizational structure goes with International global strategy
Functional
Which organizational structure goes with Mutlidomestic and Global Standardization global strategies?
Multidivisional
Which organizational structure goes with Transnational global strategy
Global Matrix
