Managing Orgs

Question 1

T/F: Leaders within an organization should help employees connect with the larger purposes of the organization.

Answer 1

True

Question 2

In the end, governance is all about:

Answer 2

Effective leadership

Question 3

T/F: Clarity of purpose is an essential element of organizational design

Answer 3

True

Question 4

T/F: Governance is about deciding what the purpose of the organization should be, then deciding who is going to have power, and how we can hold people accountable for pursuing our intended purpose.

Answer 4

True

Question 5

T/F: In relation to the purpose of a business, we sometimes see debates between those who believe that the purpose of the firm is to pursue profit and those who claim that firms have a social responsibility.

Answer 5

True

Question 6

Who said, “There is one and only one social responsibility of a business- to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”

Answer 6

Milton Friedman

Question 7

T/F: The shareholder value perspective suggests that a business should be run to maximize returns to shareholders

Answer 7

True

Question 8

The stakeholder perspective has been criticized for:

Answer 8

Ambiguity regarding how to balance the demands of different constituencies

Question 9

The stakeholder perspective recognizes the complexities of the many players with an interest in the firm and has been said to:

Answer 9

Facilitate a long-term focus among managers

Question 10

T/F: When an employee of an organization comes to work just for a paycheck or out of a sense of duty, they are likely to become disengaged, lack motivation, and have lower levels of commitment to the organization

Answer 10

True

Question 11

T/F: Successful organizations help people to connect their work to a purpose beyond their economic self-interest

Answer 11

True

Question 12

T/F: Satisfying the needs of customers by providing something desirable and of value can help employees connect to a larger purpose beyond monetary gain

Answer 12

True

Question 13

T/F: When employees feel like their position in the organization makes a difference and has purpose beyond monetary gain, their job becomes more meaningful and motivating.

Answer 13

True

Question 14

T/F: Mission statements are primarily aimed at the organization’s top management

Answer 14

FALSE- they are for all employees

Question 15

T/F: A good mission statement always identifies the organization’s purpose, products and services, and customers

Answer 15

FALSE

Question 16

T/F: It is generally a good idea to align your mission statement with your competitors’

Answer 16

False- you want to differentiate

Question 17

T/F: A mission statement will have the greatest impact when top managers commit to lead and live by it

Answer 17

True

Question 18

T/F: Its imperative that mission statements are developed by top management

Answer 18

False - best developed by individuals throughout

Question 19

From a rational system perspective, one of the most influential theories of governance in organizations is known as

Answer 19

Agency Theory

Question 20

T/F: According to agency theory, the principals in the principal-agent relationship are the owners of the firm

Answer 20

True

Question 21

The responsibility of a board of directors is to:

Answer 21

Compensate, evaluate, hire and fire management

Question 22

The interests of shareholders and managers may not align because

Answer 22

Managers pursue projects that don’t maximize returns, managers may be too risk averse, managers don’t work hard enough, shareholders want to see returns over a different time horizon

Question 23

T/F: Pluralistic ignorance occurs when individuals within groups do not recognize that others share their concerns

Answer 23

True - group members who have private concerns will tend to underestimate the concerns of other group members

Question 24

A natural system lens view of corporate governance tends to focus on:

Answer 24

The individuals involved in corporate governance and their interactions

Question 25

T/F: Research shows a strong relationship between implementing a rational view structure of corporate governance and the firm's financial performance

Answer 25

False

Question 26

T/F: A natural system lens view of corporate governance tends to emphasize the importance of group dynamics among board members

Answer 26

True

Question 27

Efficiency or effectiveness: maximizing results without wasting time or resources

Answer 27

Efficiency

Question 28

T/F: From a natural system perspective, success can be measured by financial metrics and outcomes related to quality

Answer 28

FALSE- natural system is focused on people. These indicators are for rational system

Question 29

Governance is fundamentally about which two things

Answer 29

purpose and control

Question 30

What is easier to measure- a lagging or leading indicator?

Answer 30

Lagging indicators

Question 31

What do "theories" do?

Answer 31

Help us frame the way we think about organizations and ultimately the actions that we take. Theories -> principles -> Applications

Question 32

From a rational system perspective, organizational structure:

Answer 32

Is primarily focused on formal relationships

Question 33

T/F: Contingency theory suggest that if management is trying to build a culture of innovation, they should reduce their reliance on bureaucracy and use structures that encourage the free flow of information among groups and individuals

Answer 33

True

Question 34

T/F: Contingency theory emphasizes that organizational structure has a direct impact on organizational performance

Answer 34

FALSE- structure alone won't lead to increased performance. it's the fit of the structure and the organization's context that could help improve performance

Question 35

T/F: The size of the organization is irrelevant to choosing the best organizational structure

Answer 35

FALSE

Question 36

T/F: Within a functional structure, groups are formed around people engaged in similar activities

Answer 36

True

Question 37

T/F: Functional structures are typically more efficient and can reduce the duplication of roles in the organization

Answer 37

True

Question 38

Functional structures are most likely to be seen in what kinds of organizations?

Answer 38

Small/med, operating in stable environment, firms that value outcomes like efficiency and consistency, organizations with limited number of product offerings

Question 39

T/F: Within a divisional structure, firms create business units that operate much like separate firms

Answer 39

True

Question 40

T/F: Divisional structures can include groupings around products and services, different geographic regions, and different types of customers

Answer 40

True

Question 41

Divisional structures would not be appropriate for which kind of firm?

Answer 41

Firms with a low cost strategy (2.4)

Question 42

T/F: Divisional structures can foster competition for resources between different business units in the same company

Answer 42

True

Question 43

T/F: One of the structures that can be incorporated into a matrix structure is the project-based organization

Answer 43

True

Question 44

T/F: Heavy conflict resolution demands are a disadvantage of the matrix structure

Answer 44

True

Question 45

T/F: The matrix structure makes sense to consider when companies face competing pressures on two broad dimensions

Answer 45

True

Question 46

T/F: A main advantage of the matrix arises from having two different perspectives (project and function), each having strong input into decisions

Answer 46

True

Question 47

T/F: A network structure tends to suit an organization that outsources tasks not in their area of expertise

Answer 47

True

Question 48

T/F: A network structure can help to promote flexibility and reduced costs in organizations

Answer 48

True

Question 49

T/F: A hybrid structure is a combination of two or more structures

Answer 49

True

Question 50

The use of team-based structures designed around specific projects have increased in popularity because such a structure

Answer 50

Allows for an organization to be more nimble and adaptable

Question 51

What is NOT consistent with contingency theory?

Answer 51

The external environment does not impact decisions about organizational structure

Question 52

T/F: Functional structures are typically more efficient and can reduce the duplication of roles in the organization

Answer 52

True

Question 53

T/F: A key intended benefit of the matrix structure is to capture the benefits from multiple organizational structures

Answer 53

True

Question 54

T/F: A network structure that outsources key organizational tasks tends to enhance employee loyalty and allows for more organizational control

Answer 54

False

Question 55

What are some common challenges associated with organizational growth?

Answer 55

1. inability to quickly respond to the environment, 2. difficulty maintaining culture, 3. overstretched competencies. NOT lack of open system perspective

Question 56

T/F: Relying on competition between divisions in an organization is an example of bureaucratic control

Answer 56

False

Question 57

What is NOT a feature of bureaucracy?

Answer 57

Integration of the person and the role

Question 58

Match up the three types of control mechanisms with the 3 lenses

Answer 58

1. Rational = bureaucratic 2. Natural = clan 3. Open = market

Question 59

T/F: Organizational growth typically makes it more difficult to ensure that things are well-coordinated and controlled throughout the organization

Answer 59

True

Question 60

T/F: Achieving efficiency is the most important goal a manager must achieve when designing an organization

Answer 60

False- effectiveness is the most important

Question 61

T/F: Mechanistic organizations tend to have jobs that are clearly defined and highly specialized

Answer 61

True- bc standardization is a core principle of mechanistic organizations

Question 62

T/F: Hierarchical decision-making is relatively more important in organic than in mechanistic designs

Answer 62

False- hierarchical decision making is central to a mechanistic design

Question 63

T/F: in organic designs, decision-making processes tend to be centralized and then augmented through cross-functional teams and task forces

Answer 63

False- organic design decision-making is decentralized, though task forces and cross-functional teams are often utilized

Question 64

T/F: The life cycle model consists of four stages: entrepreneurial, collectivity, formalization and elaboration

Answer 64

True

Question 65

What is a challenge existing at the collectivity stage of the organizational life cycle?

Answer 65

The need to delegate responsibility

Question 66

T/F: The implementation of formal structures, policies, and procedures is associated with the elaboration stage of the organizational life cycle

Answer 66

FALSE- associated with the 3rd stage of formalization

Question 67

T/F: The need for developing a clear vision and establishing culture is associated with the entrepreneurial stage of the organizational life cylce

Answer 67

True

Question 68

What does NOT happen when an organization relies on hierarchy?

Answer 68

Managers are not encouraged to coordinate horizontally across units; can try to use direct contact method to combat

Question 69

T/F: Direct contact across units tends to work better for sharing information than for influencing decisions

Answer 69

True

Question 70

What are some approaches for using integrative mechanisms across organizational units?

Answer 70

Committees representing different units, cross-functional teams, task forces, matrix structure

Question 71

T/F: In organic designs, decision-making processes tend to be centralized and then augmented through cross-functional teams and task forces

Answer 71

FALSE

Question 72

Which factor in the external environment is most likely to have a direct impact on the functioning of an organization?

Answer 72

Customers

Question 73

T/F: PEST analysis may be used as a tool to understand the general environment

Answer 73

True. PEST stands for Political, economic, sociocultural, and technological

Question 74

As uncertainty in the environment increases, firms tend to respond how?

Answer 74

Add boundary-spanning roles, create specialized departments, collect data from the external environment. THEY DO NOT implement mechanistic structures

Question 75

T/F: A main assumption of resource dependence theory is that organizations typically do not control every resource

Answer 75

True

Question 76

What are the broad strategies that organizations use to deal with resource dependence?

Answer 76

1. Create linkages with other organizations, 2. attempt to control the environment directly

Question 77

T/F: Exploitation is defined as "getting better at the things the firm already knows how to do by refining and extending existing competencies"

Answer 77

True

Question 78

T/F: Exploratory activities are more likely to lead to breakthrough products or ideas

Answer 78

True

Question 79

T/F: Competency traps occur when firms focus too much on exploration while neglecting exploitation

Answer 79

FALSE

Question 80

T/F: Most changes in technology can be classified as disruptive

Answer 80

FALSE

Question 81

What does an ambidextrous organization allow?

Answer 81

separate processes and incentives in the disruptive unit, growth in the disruptive unit, exploration of new opportunities to better the firm's chance of survival, a way to overcome the innovators dilemma

Question 82

T/F: Uncertainty in an organizations external environment is influenced by its complexity and stability

Answer 82

True

Question 83

Firm competencies are supported by:

Answer 83

Structures, processes, people, systems. NOT CONVENIENCE

Question 84

T/F: Managers with a long-term focus are more likely to fall into a competency trap

Answer 84

False

Question 85

Sustaining innovators refer to the improvements in the existing products and services made by the firm. These innovations are essentially driven by

Answer 85

Customer demand

Question 86

T/F: One of the ways a firm can avoid being disrupted is by acquiring potentially disruptive firms

Answer 86

True