Chapter 9 Strategic Management

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Essentials of Strategic Management, 3rd Edition Chapter 9
Implementing Strategy Through Organizational Design

Name: __________________________ Date: _____________

1.T F Strategy is implemented through organizational design. ANS: True PTS: 1 REF: 227 NAT: AACSB Analytic | AACSB Strategy

2.T F Organizational design means selecting the combination of organizational structure and control systems that lets a company pursue its strategy most effectively. ANS: True PTS: 1 REF: 227 NAT: AACSB Analytic | AACSB Strategy

3.T F The primary role of organizational structure is to coordinate employees activities to effectively implement strategy and to motivate employees to achieve superior efficiency. ANS: Tue PTS: 1 REF: 227 NAT: AACSB Analytic | AACSB Strategy

4.T F The role of organizational structure is to provide managers with specific feedback on how well an organization and its members are performing and building competitive advantage. ANS: False PTS: 1 REF: 228 NAT: AACSB Analytic | AACSB Strategy

5.T F Organizational structure and control shape the way people behave and determine how they will act in the organizational setting. ANS: True PTS: 1 REF: 227 NAT: AACSB Analytic | AACSB Strategy

6.T F Effective organizational design can simultaneously allow a company to obtain a competitive advantage and create value. ANS: True PTS: 1 REF: 227 NAT: AACSB Analytic | AACSB Creation of Value

7.T F The value creation activities of organizational members are meaningless unless some type of structure is used to assign people to tasks and link the activities of different people and functions. ANS: True PTS: 1 REF: 227 NAT: AACSB Analytic | AACSB Creation of Value

8.T F The basic building blocks of organizational structure are differentiation and integration. ANS: True PTS: 1 REF: 228 NAT: AACSB Analytic | AACSB Strategy

9.T F When corporate managers choose how to divide people and tasks into functions and divisions to increase their ability to create value, they are making horizontal differentiation choices. ANS: True PTS: 1 REF: 228 NAT: AACSB Analytic | AACSB Creation of Value

10.T F Span of control is the means by which a company seeks to coordinate people and functions to accomplish organizational tasks. ANS: False PTS: 1 REF: 229 NAT: AACSB Analytic | AACSB Strategy

11.T F Vertical integration refers to the number of subordinates a manager directly manages. ANS: False PTS: 1 REF: 228 NAT: AACSB Analytic | AACSB Strategy

12.T F Flat organizational structures have few hierarchical levels relative to size. ANS: True PTS: 1 REF: 229 NAT: AACSB Analytic | AACSB Strategy

13.T F As a company grows and diversifies the number of levels in its hierarchy decreases. ANS: False PTS: 1 REF: 230 NAT: AACSB Analytic | AACSB Strategy

14.T F The principle of minimum chain of command states that an organization should choose a hierarchy with the minimum number of levels of authority necessary to achieve its strategy. ANS: True PTS: 1 REF: 231 NAT: AACSB Analytic | AACSB Strategy...
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