CH 8 Flashcards
1) Effective strategy formulation can usually guarantee successful strategy implementation.
F
Strategy formulation is the managing of forces during the action, whereas strategy
implementation is the positioning of forces before the action.
F
Strategy formulation requires coordination among a few individuals, but strategy
implementation requires coordination among many.
T
It is always easier to say you are going to do something (strategy formulation) than to actually do it (strategy implementation).
T
Unlike strategy formulation, strategy implementation varies considerably among different types
and sizes of organizations.
T
6) A bottom-up flow of communication is essential for developing top-down support.
F
Annual objectives are key components in the strategic-management process because they dictate
how resources will be allocated.
T
Horizontal consistency is more important than vertical consistency in developing annual
objectives.
F
Undesirable conduct such as distorting the record can be a result of overemphasis on achieving
objectives.
T
Policies refer to specific guidelines, methods, procedures, rules, forms, and administrative
practices established to support and encourage work toward stated goals.
T
Strategies clarify what can and cannot be done in pursuit of an organization’s objectives.
F
) Not allocating resources according to the priorities indicated by approved objectives is
detrimental to the strategic-management process.
T
Four types of resources that can be used to achieve desired objectives are financial, physical,
human and technological.
T
Avoidance, infusion and confrontation are the classifications for the various approaches for minimizing and resolving conflict.
F
15) Conflict of any kind is avoidable in organizations.
F
Concerning managing and resolving conflict, defusion includes such actions as ignoring the
problem in the hope that the conflict will resolve itself.
F
Holding a meeting at which conflicting parties present their views and work through their differences is part of the defusion strategy of managing conflict.
F
Exchanging members of conflicting parties so each can gain an appreciation of the other’s point
of view exemplifies a confrontation approach
T
Medium-sized firms tend to be divisionally structured, whereas large firms tend to use an SBU
(strategic business unit) or matrix structure.
T
Tasks and activities are grouped together by business function in a divisional organizational
structure.
F
21) A functional structure can be effective at limiting short-term and narrow thinking.
F
Most large companies have abandoned the functional structure in favor of decentralization.
T
With a divisional structure, it is possible that competition between divisions may become so
intense that it leads to the improved sharing of ideas and resources for the common good of the
firm.
F
When an organization has a divisional structure by customer, it can effectively cater to the
requirements of clearly defined customer groups.
T
Because activities are organized according to the way work is actually performed, a divisional
structure by process is similar to the matrix structure.
F
26) The most complex of all designs is a matrix structure.
T
27) With the matrix structure it is common for functional resources to be duplicated.
F
When developing an organizational chart, the top executive of the firm should be reserved for
the President.
F
When developing an organizational chart, it is not wise to recommend a dual title for just one
executive.
T
In developing an organizational chart, avoid having a particular person reporting to more than one person above them in the chain of command.
T
31) Restructuring is also called rightsizing.
T
32) In terms of number of employees, restructuring usually involves increasing the size of the firm.
F
Reengineering does not usually affect the organizational structure or chart, nor does it imply job
loss or employee layoffs.
T
35) The focus of restructuring is changing the way work is actually carried out.
F
Cornerstones of reengineering are decentralization, reciprocal interdependence and information
sharing.
T
An effective bonus system should be based on two key factors: annual objectives and long-term
objectives.
T
People’s anxieties are raised with the thought of change because they fear economic loss,
inconvenience, uncertainty and a break in normal social patterns.
T
Resistance to change can be considered the single greatest threat to successful strategy
implementation
T