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Successful organizations create ________ boundaries among the ________ activities as well as between the organization and its external customers, suppliers, and alliance partners.


A) impermeable; external
B) impermeable; internal
C) permeable; external
D) permeable; internal

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Ambidextrous organizational designs are useful for firms that wish to create modest, incremental innovations at the same time as dramatic, breakthrough innovation. This is done by maintaining adaptability and alignment of values and coordination across organizational activities.

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If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is a(n) ________ structure.


A) worldwide functional
B) worldwide product division
C) worldwide matrix
D) international division

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Explain why firms that achieve both adaptability and alignment are considered ambidextrous organizations.

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The concept of ambidexterity incorporate...

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Effective ambidextrous organizations maintain adaptability, which means that


A) managers are focused on growth opportunities.
B) there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated.
C) divisional-goals are consistent with overall corporate goals.
D) managers must remain proactive in expanding and/or modifying their product-market scope to anticipate and satisfy market conditions.

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What type of organization is defined as a central hub surrounded by networks of outside suppliers and specialists?


A) matrix organization
B) virtual organization
C) modular organization
D) barrier-free organization

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Which of the following is a disadvantage of a functional type of organizational structure?


A) Differences in functional orientation may impede communication and coordination.
B) Use of managerial and technical talent is inefficient due to pooling of expertise in functional areas.
C) Decision making is centralized at the top of the organization.
D) Managers tend to be overly concerned with long-term strategies that minimize the importance of functional area strengths.

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According to author, Jeffrey Pfeffer, which of the following is not an advantage of teams?


A) Teams interact so closely and therefore coordination and integration becomes unnecessary.
B) Teams substitute peer-based control for hierarchical control of work.
C) Teams often develop more creative solutions because they share.
D) Teams permit the absorption of administrative tasks previously performed by specialists.

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The two vital ongoing activities necessary for creating boundaryless organizations that managers today must concern themselves with are


A) financial returns and marketplace value.
B) market share and shareholder value.
C) type of structure, mechanisms, processes, and techniques for enhancing permeability.
D) product marketability and capital structure.

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

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Discuss the three major contingencies that influence the chosen organizational structure as a firm expands into foreign markets.

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In the global marketplace, managers must...

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Organizational structure refers to the formalized patterns of interactions that link company ________, ________, and ________.


A) processes; mechanisms; techniques
B) tasks; mechanisms; techniques
C) processes; people; mechanisms
D) tasks; technologies; people

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As firms expand into foreign markets, they generally follow a pattern of change in structure that parallels the changes in their strategies. Which one of the following is not a major contingency that influences the structure they choose?


A) the type of strategy that is driving the company foreign operations
B) the research and development budget commitment
C) product diversity
D) the extent of the company dependence on foreign sales

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Operational decision making in a large business places excessive demands on top management of the firm.

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Which of the following is an advantage of a functional type of organizational structure?


A) Decentralized decision-making enhances an organization-wide perspective across functions.
B) It facilitates the development of general management talent.
C) Pooling of specialists enhances coordination and control.
D) It is easy to establish uniform performance standards.

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The O'Reilly and Tushman study on ambidextrous organizational designs found that there was little support for the argument that organizational structure, management practices employedandperformance of both the breakthrough initiative and the traditional business are related.

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A global start-up faces many management challenges including


A) communicationand coordination across time zones.
B) pressure to perform internally all primary activities of the value chain.
C) assuring financing from home country only.
D) hiring only from home country.

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Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of which type of organizational structure?


A) divisional
B) matrix
C) holding company
D) functional

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What is organizational structure and why is it important?

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Organizational structure refers to the f...

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A simple structure is characterized by


A) high specialization and low centralization.
B) low specialization and high centralization.
C) low formality and low creativity.
D) high formality and low centralization.

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