QUESTION How can setting up a virtual company help a core company avoid the second stage of organizational decline: undisciplined pursuit of more? What will be an ideal response? ANSWER Answer: It can keep a company from overreaching into areas the company knows little about and instead just align with other companies that have […]
QUESTION A virtual company with its core firm in Chicago builds skyscrapers. What would this company look like as a network connected to four or more outsource companies? You may write out your response or draw and label a network. Be sure to indicate where the outsource companies are located. What will be an ideal […]
QUESTION Which of the following, if true, most supports the CEO’s position that the firm is basically healthy? A) Sales have declined proportionally less than those of Crescendo’s competitors. B) Supervisors report few complaints coming from their subordinates. C) With the economy improving, the firm is beginning to turn a profit. D) It has been […]
QUESTION Briefly describe what is meant by “organizational culture.” What will be an ideal response? ANSWER Answer: Organizational culture, sometimes called corporate culture, consists of the shared beliefs and values that develop within an organization and guide the behavior of its members. Explanation: Organizational culture, sometimes called corporate culture, consists of the shared beliefs […]
QUESTION When Ford or any other automotive company sets up a matrix structure to develop a certain kind of car, what kind of team is the company most likely pulling together? A) an action team B) a production team C) a project team D) an advice team E) a cross-functional self-managed team ANSWER Answer: […]
QUESTION Which of the following is a benefit of using a matrix structure? A) It is easy to use. B) It often represents long-term solutions. C) It can lead to innovative solutions in product development. D) The chain of command is simple. E) It allows for close managerial supervision. ANSWER Answer: C Explanation: C) […]
QUESTION What is a “story” in the business sense? What will be an ideal response? ANSWER Answer: A story is an oral history about the firm’s achievements. It is a narrative based on true events that is repeated—and sometimes embellished upon—to emphasize a particular value. Explanation: A story is an oral history about the […]
QUESTION Which organizational structure is likely to have the most decentralized authority? A) divisional structure: geographic divisions B) divisional structure: customer divisions C) functional structure D) matrix structure E) hybrid structure ANSWER Answer: D Explanation: D) The smaller the firm, the fewer layers of hierarchy there likely are. As companies increase in personnel size, […]
QUESTION Evelyn has a team of editors reporting to her. Evelyn’s boss has given her the task of editing three books within the next month, at which point the boss wants to know how things went. What is Evelyn going to need to do to follow her boss’s orders? What will be an ideal response? […]
QUESTION Which of the following is a drawback of using a matrix structure? A) Project members may have communication problems. B) It limits flexibility for managers. C) It leads to inefficient use of resources. D) Specialists work only with other specialists. E) It encourages employees to think alike. ANSWER Answer: A Explanation: A) A […]
