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McDonald's uses detailed standard operating procedures throughout the world to ensure product quality.This implies that McDonald's has a high degree of _____.


A) formalization
B) specialization
C) decentralization
D) hierarchy

E) B) and C)
F) A) and B)

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The most important yet least visible element of organizational culture is _____.


A) values
B) norms
C) laws
D) artifacts

E) A) and B)
F) All of the above

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Which of the following best exemplifies the use of input controls?


A) McDonald's use of standard operating procedures
B) GM's use of the multidivisional strategy
C) Zappos' use of monitoring-free customer service calls
D) Southwest Airline's use of employee friendliness

E) B) and C)
F) None of the above

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Employees learn about an organization's culture through the process of _____.


A) socialization
B) exploitation
C) co-opetition
D) acculturation

E) A) and B)
F) None of the above

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In which of the following ways does Zappos achieve organizational control?


A) It continually changes the organizational values that guide its employees.
B) It refrains from monitoring its employees' calls.
C) It encourages employees to be creative and innovate and to go the extra mile to deliver a wonderful customer experience.
D) It enforces that each group member's compensation depends in part on the group's overall productivity.

E) None of the above
F) B) and D)

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Which of the following is an advantage offered by a functional structure?


A) It allows for an efficient top-down communication chain and thus relies on a relatively tall structure.
B) It facilitates a lower division of labor, which is linked to higher productivity.
C) It allows for a higher degree of specialization and deeper domain expertise.
D) It facilitates a lower level of specialization.

E) None of the above
F) A) and B)

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Why is the optimal organizational structure a multidivisional structure?


A) Its focus is on driving down costs.
B) Its focus is on producing differentiated products.
C) Its focus is on retaining activities within a single geographic area.
D) Its focus is on establishing a flat hierarchy operated in a decentralized fashion.

E) All of the above
F) B) and C)

Correct Answer

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When a firm diversifies into different product lines and geographies, a _____ structure is preferred.


A) simple
B) functional
C) multidivisional
D) network

E) A) and B)
F) C) and D)

Correct Answer

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