Question 1

Short-term objectives and action plans are types of boundaries that channel the efforts of employees toward goal accomplishment.

Accepted Answer

A) True 
 B)False  True

Question 2

Behavioural control systems use culture, rewards, and boundaries in a balanced and consistent way to achieve results.

Accepted Answer

A) True 
 B)False

Question 3

In firms with differentiation strategies, the culture should foster _____ levels of interdependence and rewards should be based primarily on _____ measures of output.

Accepted Answer

A)   low; financial
B)   low; behavioural
C)   high; financial
D)   high; behaviouralE) C) and D)
F) All of the above D

Question 4

The primary drawback of "traditional" strategic control systems is

Accepted Answer

A)   they are only appropriate when the environment is stable and simple.
B)   goals and objectives cannot be measured with a high level of certainty.
C)   they lead to complacency.
D)   they lack the flexibility needed to adjust to changes in the environment.E) A) and B)
F) B) and C)

Question 5

In firms that follow related diversification strategies, reward and control systems rely on behavioural indicators since the organization needs to reward and reinforce behaviours that facilitate sharing and collaboration.

Accepted Answer

A) True 
 B)False

Question 6

Why is it important to have a balance among the three behavioural controls?

Accepted Answer

Behavioural controls are extremely usefu...

Question 7

Boundaries and constraints, when used properly, can minimize improper and unethical conduct.

Accepted Answer

A) True 
 B)False

Question 8

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by

Accepted Answer

A)   posting written statements of the organization's goals and objectives.
B)   discouraging the formation of subcultures that isolate work groups.
C)   designing effective reward systems.
D)   encouraging employees to see themselves as free agents.E) B) and C)
F) B) and D)

Question 9

Stock analysts generally issue more "sell" recommendations than "buy" recommendations.

Accepted Answer

A) True 
 B)False

Question 10

Continuous monitoring enhances an organization's ability to respond with speed and flexibility.

Accepted Answer

A) True 
 B)False

Question 11

All of the following are examples of how organizational culture exerts behavioural control except

Accepted Answer

A)   culture helps maintain control by creating behavioural norms.
B)   culture generates unwritten standards of acceptable behaviour.
C)   culture encourages individual identification with the organization and its objectives.
D)   culture sets explicit boundaries.E) A) and B)
F) B) and C)

Question 12

In terms of building a strong and effective corporate culture, Canada's Cirque du Soleil was described as focusing on

Accepted Answer

A)   innovation.
B)   customer service.
C)   strategy formulation.
D)   operational efficiency.E) All of the above
F) C) and D)

Question 13

All of the following are characteristics of effective reward and incentive systems except:

Accepted Answer

A)   performance measures are clear and highly visible.
B)   the structure is fixed to assure employees of consistency.
C)   the compensation system is perceived as fair and equitable.
D)   objectives are well understood, and broadly accepted.E) None of the above
F) B) and D)

Question 14

The "traditional" approach to strategic control is sequential. Which of the following is not one of the steps in the sequence?

Accepted Answer

A)   Action plans are submitted by lower level managers
B)   Performance is measured against the predetermined goal
C)   Strategies are implemented
D)   Strategies are formulated and top management sets goalsE) All of the above
F) A) and B)

Question 15

Which of the following is not one of the characteristics of a contemporary control system?

Accepted Answer

A)   It is a key catalyst for an ongoing debate about underlying data, assumptions, and action plans.
B)   It must focus on constantly changing information that is strategically important.
C)   It circumvents the need for face-to-face meetings among superiors, subordinates, and peers.
D)   It generates information that is important enough to demand regular and frequent attention.E) None of the above
F) A) and B)

Question 16

Which of the following is not one of the functions of reward and incentive systems?

Accepted Answer

A)   They represent a poor means of influencing an organization's culture.
B)   They focus efforts on high-priority tasks.
C)   They motivate high levels of individual and collective task performance.
D)   They represent an effective control mechanism.E) B) and C)
F) A) and C) A

Question 17

Sales quotas, operating budgets, and production schedules are examples of "traditional" controls.

Accepted Answer

A) True 
 B)False

Question 18

For firms competing in highly unstable and turbulent industries, "traditional" strategic controls are most appropriate.

Accepted Answer

A) True 
 B)False

Question 19

Managerial opportunism

Accepted Answer

A)   is a by-product of a cost leadership strategy
B)   is limited by takeover constraint
C)   is only a factor in global firms.
D)   is encouraged by takeover constraint.E) A) and D)
F) B) and C)

Question 20

Auditors are appointed by the Securities and Exchange Commission to audit a company's financial statements.

Accepted Answer

A) True 
 B)False

Exam 10: Creating Effective Organizational Designs

Short-term objectives and action plans are types of boundaries that channel the efforts of employees toward goal accomplishment.

Correct AnswerverifiedTrue

Behavioural control systems use culture, rewards, and boundaries in a balanced and consistent way to achieve results.

Correct AnswerverifiedShow Answer

In firms with differentiation strategies, the culture should foster _____ levels of interdependence and rewards should be based primarily on _____ measures of output.

Correct AnswerverifiedD

The primary drawback of "traditional" strategic control systems is

Correct AnswerverifiedShow Answer

In firms that follow related diversification strategies, reward and control systems rely on behavioural indicators since the organization needs to reward and reinforce behaviours that facilitate sharing and collaboration.

Correct AnswerverifiedShow Answer

Why is it important to have a balance among the three behavioural controls?

Correct AnswerverifiedBehavioural controls are extremely usefu...View AnswerShow Answer

Boundaries and constraints, when used properly, can minimize improper and unethical conduct.

Correct AnswerverifiedShow Answer

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by

Correct AnswerverifiedShow Answer

Stock analysts generally issue more "sell" recommendations than "buy" recommendations.

Correct AnswerverifiedShow Answer

Continuous monitoring enhances an organization's ability to respond with speed and flexibility.

Correct AnswerverifiedShow Answer

All of the following are examples of how organizational culture exerts behavioural control except

Correct AnswerverifiedShow Answer

In terms of building a strong and effective corporate culture, Canada's Cirque du Soleil was described as focusing on

Correct AnswerverifiedShow Answer

All of the following are characteristics of effective reward and incentive systems except:

Correct AnswerverifiedShow Answer

The "traditional" approach to strategic control is sequential. Which of the following is not one of the steps in the sequence?

Correct AnswerverifiedShow Answer

Which of the following is not one of the characteristics of a contemporary control system?

Correct AnswerverifiedShow Answer

Which of the following is not one of the functions of reward and incentive systems?

Correct AnswerverifiedA

Sales quotas, operating budgets, and production schedules are examples of "traditional" controls.

Correct AnswerverifiedShow Answer

For firms competing in highly unstable and turbulent industries, "traditional" strategic controls are most appropriate.

Correct AnswerverifiedShow Answer

Managerial opportunism

Correct AnswerverifiedShow Answer

Auditors are appointed by the Securities and Exchange Commission to audit a company's financial statements.

Correct AnswerverifiedShow Answer

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True

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In firms with differentiation strategies, the culture should foster _ levels of interdependence and rewards should be based primarily on _ measures of output.

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D

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Behavioural controls are extremely usefu...
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A

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