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ch11 - Chapter 11Organizational Structure and Controls...

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Chapter 11—Organizational Structure and Controls TRUE/FALSE 1. Decisions about strategy and structure are interrelated. ANS: T PTS: 1 DIF: Easy REF: 308 OBJ: 11-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Knowledge of general business functions 2. Over time, large and complex organizations must customize their structure to fit their unique strategic needs. ANS: T PTS: 1 DIF: Easy REF: 308 OBJ: 11-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing administration & control 3. Organizational structures must be both stable and flexible. ANS: T PTS: 1 DIF: Medium REF: 309 OBJ: 11-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing administration & control 4. Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop. ANS: F PTS: 1 DIF: Easy REF: 309 OBJ: 11-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing administration & control 5. A corporate-wide emphasis on sharing leads to a reliance on financial controls. ANS: F PTS: 1 DIF: Medium REF: 311 OBJ: 11-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing administration & control 6. The three types of organizational controls are strategic, isomorphic, and financial. ANS: F PTS: 1 DIF: Medium REF: 311 OBJ: 11-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing administration & control 7. Diversification controls guide the use of strategy, indicate how to compare actual results with expected results, and suggest corrective actions to take when the difference is unacceptable. ANS: F PTS: 1 DIF: Medium REF: 311
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OBJ: 11-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing administration & control 8. To properly execute strategic controls in firms using related diversification, the executives must have a deep understanding of each unit’s business-level strategy. ANS: T PTS: 1 DIF: Medium REF: 311 OBJ: 11-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing administration & control 9. RexMacDonald, Inc., uses a differentiation strategy that relies on cooperation, communication, and sharing of ideas among employees. In order to foster this behavior, RexMacDonald should emphasize strategic controls over financial controls. ANS: T PTS: 1 DIF: Medium REF: 311 OBJ: 11-01 TYPE: application NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing administration & control 10. Organizations should first change strategy and then determine a compatible structure as it is easy to change existing structure.
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