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Exam 10: Creating Effective Organizational Designs

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Question 51

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Procter & Gamble used communities of practice and human resource practices to help it achieve effective collaboration and integration across its different business units.This effort resulted in the successful development of the Crest Whitestrips product and is an example of good use of boundary-constrained organizational design.

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B) False

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Question 52

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When a firm has international operations,choosing the most appropriate structure depends upon the extent of international expansion,the type of strategy,and the degree of market diversity.

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B) False

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Question 53

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According to the text,boundaryless organizational structures are most effective when they replace rather than complement traditional organizational structures.

Global start-ups occur after a corporation has exhausted all other possibilities for domestic growth.

If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets,this is a example of a firm using a ______________ of organizational types.

A simple structure is characterized by

The strategy and structure of a firm change as the firm increases in size,diversifies into new product markets,and limits its geographic scope.

A global start-up faces many management challenges including

One of the disadvantages of a divisional structure is that the divisions often perceive themselves as being in competition with each other and are therefore unwilling to share information to help other divisions improve.ArcelorMittal found a solution which twins an efficient steel mill with a struggling one.

Functional structures are generally found in organizations in which there is a single or unrelated product or service,high production volume,and some vertical integration.

The most appropriate type of organizational structure to select is dependent upon the product or service the company provides.

Which of the following is considered to be an advantage of a matrix structure?

What advantages does outsourcing not provide an organization?

In a barrier-free organization,differences in skills,authority,and talent disappear.

Managers trained in rigid hierarchies do not find it difficult to transition to participative style required for effective teamwork.

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was the clear and compelling vision that the company senior management team communicated.

A firm that chooses to move into unrelated product areas,by acquiring existing businesses,is likely to find that the strategy requires relatively little integration across businesses and sharing of resources and therefore is would consider a using holding company structure.

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the reward systems emphasized traditional unit goals.

Coca-Cola,Ford Motor Company,H.J.Heinz,Nike,and Procter & Gamble are working together to develop plant-based plastics.Each company brings its own competency to the table.This collaboration is an example of a _____________ organization.

In successful ambidextrous organizations,according to the O'Reilly and Tushman study,the traditional and new units were shielded from each other so that they each focused attention and energy on its own operations,products,and customers.